CapitaLand Ascendas REIT (CLAR) has acquired 5 Tuas Avenue 5 — a ramp-up logistics property — for $133.9 million from Hup Hin Transport. The purchase price represents a 1.5% discount to the independent market valuation as at Feb 1.

The facility is currently fully occupied by four tenants, including Hup Hin Transport. Following the acquisition, the property will have a weighted average lease expiry of five years with annual rental escalation of 2.0% under a triple-net lease structure.

According to CLAR, the property is the largest and most intensive industrial estate in the western region of Singapore. It comprises a seven-storey logistics building with a gross floor area of 539,922 sq ft.

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The property boasts modern specifications, including direct ramp access for 40-foot container trucks up to level six, a 13m clear floor to ceiling height, and a floor loading capacity of up to 30 kN per sq m. It is also close to key infrastructure such as Tuas Mega Port, Jurong Port and Tuas Second Link, which connects Singapore to Johor, Malaysia.

The deal was brokered by CBRE’s industrial capital markets team. Loh Lee Fen, CBRE Singapore’s head of industrial capital markets, notes that Singapore’s industrial real estate market continues to draw long-term capital given its “strong structural tailwinds — its position as a regional hub, safe haven status amidst global uncertainty and ongoing investment in advanced manufacturing and logistics infrastructure”.

The addition of 5 Tuas Avenue 5 increases the proportion of logistics assets in CLAR’s global portfolio to 26.2%, accounting to $4.9 billion of its total portfolio value of $18.7 billion.

CLAR adds that the acquisition is expected to be accretive to distribution per unit (DPU) on a pro forma basis, with a first-year net property income yield of 6.6% pre-transaction costs and 6.5% post-transaction costs.

“Our acquisition of 5 Tuas Avenue 5 builds on our strong growth momentum in Singapore and will further diversify CLAR’s portfolio with another DPU-accretive acquisition of a well-located logistics property,” says William Tay, CEO and executive director of the manager. “The long five-year lease term provides CLAR with income visibility and stable cash flows, underpinned by the fixed annual rental escalation.”

The acquisition is expected to close in 2H2026.