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Singapore, 28 May 2025 – CapitaLand Ascendas REIT Management Limited, as the manager (the “REIT Manager”) of CapitaLand Ascendas REIT (“CLAR”), is pleased to announce the proposed acquisitions of 9 Tai Seng Drive, a Tier III colocation data centre in Singapore, and 5 Science Park Drive, a premium business space property in Singapore (collectively, the “Proposed Acquisitions”). The total purchase consideration for these acquisitions is approximately S$700.2 million².

5. Distribution per Unit (“DPU”) accretive to Unitholders¹²

Assuming the Proposed Acquisitions were completed on 1 January 2024, the pro forma impact on the DPU for the financial year ended 31 December 2024 is expected to be an improvement of approximately 0.206 Singapore cents or a DPU accretion of 1.36%.

The proposed acquisitions of 9 Tai Seng Drive and 5 Science Park Drive are DPU accretive on a standalone basis.

For 9 Tai Seng Drive, the Manager expects an improvement of approximately 0.188 Singapore cents or a DPU accretion of 1.24% on a pro forma basis¹³.

For 5 Science Park Drive, the improvement would be 0.021 Singapore cents or a DPU accretion of 0.14% on a pro forma basis¹⁴. Taking into account the incremental financial effects of the estimated rental reversion and 5SPD Deferred Consideration, the DPU accretion would be 0.038 Singapore cents or 0.25% on a pro forma basis. 

6. Organic growth potential 

There are several catalysts to enhance the income profile as the properties are well-positioned to capture organic growth opportunities in the near term.

Existing colocation agreements at 9 Tai Seng Drive were contracted with end users between 2022 and 2025. The contracted colocation rates are estimated to be approximately 30% below comparable market colocation rates. Due to the tight vacancy rate of about 2% currently and supply constraints for data centre space in Singapore, the market expectation of colocation retail rates is approximately US$300 to US$400 (S$390 to S$520)¹⁵ per kW per month¹⁶. There are opportunities for organic growth at 9 Tai Seng Drive through potential rental uplifts when these colocation agreements are due for renewal due to the favourable demand-supply dynamics.

In addition, 9 Tai Seng Drive offers potential in the mid to long term for revenue growth via expansion of the existing IT capacity, including higher power usage, subject to obtaining the relevant approvals from the authorities. The Manager has a proven track record of delivering successful asset enhancement initiatives to optimise returns.

As the existing lease at 5 Science Park Drive has a remaining term of approximately 1.5 years and the existing rent is approximately 15% below current comparable market rent in one-north and SSP 1 districts, there is opportunity for organic growth through potential rental uplift when the existing lease term ends in 2026 due to limited availability and supply of business space in the one-north and SSP 1 districts.

Details of the Proposed Acquisitions

HSBC Institutional Trust Services (Singapore) Limited, in its capacity as trustee of CLAR (the “REIT Trustee”), has entered into a conditional unit purchase agreement with Perpetual (Asia) Limited (in its capacity as trustee of CapitaLand Data Centre Trust) to acquire 100.0% of the issued units in CLDCSG Trust which holds the property located at 9 Tai Seng Drive, Singapore 535227 (“Unit Purchase Agreement”).

The REIT Trustee has also entered into a conditional put and call option agreement with Science Park Property Trustee Pte. Ltd. (in its capacity as trustee of Science Park Property Trust 1), in relation to the acquisition of the 100.0% of the interest in the property located at 5 Science Park Drive, Singapore Science Park 1, Singapore 118265.

For the two Proposed Acquisitions, CLAR is expected to incur an estimated total acquisition cost of S$724.6 million (“Total Acquisition Cost”) comprising an estimated total purchase consideration of S$700.2 million¹⁷, the total acquisition fee payable to the Manager of S$7.0 million (being 1% of the agreed property value of each of 9 Tai Seng Drive and 5 Science Park Drive) (“Acquisition Fees”) and estimated professional and other fees of approximately S$17.4 million.

The agreed property value of 9 Tai Seng Drive is approximately S$455.2 million. It was negotiated on a willing-buyer and willing-seller basis and is at a 2.2% discount to the average of two independent market valuations of S$465.5 million as at 15 May 2025¹⁸.

The purchase consideration of 5 Science Park Drive of S$245.0 million, inclusive of the 5 SPD Deferred Consideration, was negotiated on a willing-buyer and willing-seller basis and is at a 7.0% discount to the average of two independent market valuations of S$263.5 million as at 15 May 2025¹⁹.

The Proposed Acquisitions constitute an “interested person transaction” under the listing manual of the Singapore Exchange Securities Trading Limited (“Listing Manual”) and an “interested party transaction” under Appendix 6 of the Code on Collective Investment Schemes issued by the Monetary Authority of Singapore (“Property Funds Appendix”).  As the aggregate value for the Proposed Acquisitions exceeds 5% of CLAR’s latest audited net asset value / net tangible assets as at 31 December 2024, the Proposed Acquisitions are subject to the approval of unitholders of CLAR (“Unitholders”). Further, as the Proposed Acquisitions constitute an “interested party transaction” under the Property Funds Appendix, the Acquisition Fees will be paid in the form of new units in CLAR (the “Acquisition Fee Units”), which shall not be sold within one year from the date of issuance.

The REIT Manager intends to finance the Total Acquisition Cost, less the Acquisition Fees (which will be paid through the issue of the Acquisition Fee Units) through a combination of net proceeds from an equity fund raising and debt financing.

A circular will be issued to Unitholders in due course, together with a notice of extraordinary general meeting, for the purpose of seeking the approval of Unitholders for the Proposed Acquisitions.

Following the completion of the Proposed Acquisitions, CLAR will own 232 properties comprising 98 properties in Singapore, 34 properties in Australia, 50 properties in the US and 50 properties in the UK/Europe. 

1. See footnote 17 for details.
2. See footnote 17 for details.
3. On a pro forma basis as at 31 March 2025.  
4. On a pro forma basis as at 31 December 2024.
5. On a pro forma basis as at 31 December 2024.
6. Further details on Singapore Science Park can be found at www.sciencepark.com.sg. 
7. JTC has, pursuant to the JTC lease and subject to the terms therein, granted a further lease term from 1 June 2025 to 31 May 2055 subject to the satisfaction of certain conditions (including the payment of land premium (and goods and services tax (“GST”)) and stamp duty for such further lease term). The grant of the further term is a condition precedent to the acquisition of the Proposed 9 Tai Seng Drive Acquisition under the Unit Purchase Agreement, accordingly, when the acquisition of the 9 Tai Seng Drive Target Trust (as defined below) is completed, the trustee of 9 Tai Seng Drive Target Trust will hold a leasehold term expiring on 31 May 2055.
8. Includes a new colocation agreement of 10.2% occupancy expected to commence on 20 June 2025.
9. Includes a new colocation agreement of 10.2% occupancy expected to commence on 20 June 2025.
10. The NPI yield is derived using the estimated NPI expected in the first year after the proposed acquisition of 9 Tai Seng Drive. 
11. The NPI yield is derived using the estimated NPI yield expected in the first year after the proposed acquisition of 5 Science Park Drive, and is calculated excluding the 5SPD Deferred Consideration.
12. The estimated pro forma impact is calculated based on, including but not limited to, the following assumptions: (i) CLAR had completed the Proposed Acquisitions on 1 January 2024 and held the properties through 31 December 2024; (ii) the Proposed Acquisitions were funded based on a funding structure of 40% debt and 60% equity; (iii) the Manager elects to receive its base fee 80% in cash and 20% in units of CLAR; and (iv) in respect of the proposed acquisition of 5 Science Park Drive, the 5SPD Deferred Consideration is not taken into account. See the announcement titled “The Proposed Acquisition Of The Data Centre Known As 9 Tai Seng Drive And The Business Space Property Known As 5 Science Park Drive” made by the Manager on 28 May 2025 for details of the assumptions for the pro forma financial effects of the Proposed Acquisitions. 
13. The DPU accretion for the proposed acquisition of 9 Tai Seng Drive assumes that, subject to the Inland Revenue Authority’s agreement, the 9 Tai Seng Drive Target Trust is an approved sub-trust and has been granted tax transparency on its income. 
14. Excluding the effect of the 5SPD Deferred Consideration of S$30.0 million, payable on 13 November 2026.
15. Based on USD/SGD of 1.30.
16. Source: DC Byte, Singapore Data Centre Market Landscape.
17. Comprising the sum of the estimated purchase consideration of S$471.0 million less the receivables, cash and payables of S$15.8 million in CLDCSG Trust (the “9 Tai Seng Drive Target Trust”), subject to post-completion adjustments, for the proposed acquisition of 9 Tai Seng Drive and the estimated purchase consideration of  S$245.0 million for the proposed acquisition of 5 Science Park Drive.
18. The independent valuers, Jones Lang LaSalle Property Consultants Pte. Ltd. (“JLL”) and Savills Valuation And Professional Services (S) Pte Ltd were commissioned by the REIT Trustee and the REIT Manager, respectively. Both valuers’ valuations (S$465.0 million and S$466.0 million, respectively) were carried out using the discounted cash flow approach and the income capitalisation method.
19. The independent valuers, JLL and CBRE Pte. Ltd. were commissioned by the REIT Trustee and the REIT Manager, respectively. Both valuers’ valuations (S$265.0 million and S$262.0 million, respectively) were carried out using the discounted cash flow approach and the income capitalisation method.
20. Including a new colocation agreement of 10.2% occupancy expected to commence on 20 June 2025.
21. Upon renewal of the JTC lease. JTC has, pursuant to the JTC lease and subject to the terms therein, granted a further lease term from 1 June 2025 to 31 May 2055 subject to the satisfaction of certain conditions (including the payment of land premium (and GST) and stamp duty for such further lease term). The grant of the further term is a condition precedent to the acquisition of the Proposed 9 Tai Seng Drive Acquisition under the Unit Purchase Agreement, accordingly, when the acquisition of the 9 Tai Seng Drive Target Trust is completed, the trustee of the 9 Tai Seng Drive Target will hold a leasehold term expiring on 31 May 2055.