CapitaLand Ascendas Reit to divest Kim Chuan Telecommunications Complex for more than twice its acquisition price
The sale to an unrelated third party is for a consideration of about S$200.4 million
[SINGAPORE] CapitaLand Ascendas Reit (Clar) is divesting Kim Chuan Telecommunications Complex, a 10-storey data centre, for about S$200.4 million to an unrelated third party.
The sale consideration is more than double the S$100 million that Clar paid for the property at 38 Kim Chuan Road when it acquired it in March 2005.
It also represents a premium of around 32 per cent to the property’s independent market valuation of S$151.8 million as at end-June, said the Reit’s manager in a bourse filing on Wednesday (Jul 15).
The news of the divestment comes about a month after Clar announced the S$133.9 million acquisition of a modern ramp-up logistics facility at 5 Tuas Avenue 5.
Kim Chuan Telecommunications Complex has a gross floor area of 35,456 square metres and had been occupied by a single tenant since its acquisition, until the lease ended on Apr 30, 2026.
William Tay, CEO and executive director of Clar’s manager, said the sale will enhance the Reit’s financial flexibility to pursue accretive investment opportunities while strengthening the overall quality of its portfolio.
“We will continue to invest strategically in Singapore and other developed markets, supported by redevelopments and asset enhancement initiatives, to drive long-term returns for unitholders,” he added.
The Reit expects to receive net proceeds of about S$180 million after divestment costs.
These may be used to finance committed investments, repay debt, extend loans to subsidiaries, fund general corporate and working capital requirements, and/or make distributions to unitholders.
Assuming that the net proceeds were fully used to repay borrowings outstanding as at Mar 31, 2026, Clar’s pro forma aggregate leverage would decline to 41.4 per cent, from 42 per cent.
Had the divestment been completed on Jan 1, 2025, Clar’s pro forma net property income for the financial year ended Dec 31, 2025, would have been S$10 million lower, while distribution per unit (DPU) would have decreased by S$0.00203.
The Reit manager said that the divestment is not expected to have a material impact on Clar’s net asset value or DPU for the financial year ending Dec 31, 2026. The sale is expected to be completed by the second half of 2026.
Under the trust deed, the Reit manager is entitled to a divestment fee equivalent to 0.5 per cent of the sale consideration, payable in cash.
Units of Clar closed unchanged at S$2.49 on Wednesday, before the announcement.
