Capitaland Ascendas REIT (CLAR) will be expanding its logistics assets in the UK for $350.1 million.

The REIT, on Aug 11, announced the proposed acquisitions of two plots of freehold land in the East Midlands, a key logistics market in the UK. The REIT intends to develop a total of four logistics properties on the plots known as Manton Wood and Towcester.

At Manton Wood, CLAR will develop a single-storey logistics property with a gross floor area (GFA) of 42,900 sqm. In Towcester, three single-storey logistics properties ranging from approximately 20,700 sqm to 38,300 sqm will be developed. The buildings will feature eaves measuring 15 metres to 18 metres and will come with ample trailer parking, good floor loading capacity and deep yards for operational efficiency.

CLAR’s UK portfolio will also increase by 27.2% to $1.6 billion. Its UK portfolio will account for 10% of CLAR’s total AUM of $17.2 billion.

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According to the REIT, the stabilised net property income (NPI) yield for the properties is expected to be around 7.3% pre-transaction costs and 6.9% post-transaction costs.

“Embarking on our inaugural logistics developments in the UK marks a significant step forward in our strategy to scale up CLAR’s UK logistics portfolio,” says William Tay, executive director and CEO of the manager. “Adding these best-in-class and green-certified logistics properties enhances CLAR’s logistics portfolio in the East Midlands, a key market in the UK’s logistics heartlands, and capitalise on occupiers’ demand for high-quality and well-located space.”

“Including these two new projects, CLAR has a total of eight ongoing projects comprising developments, redevelopments and asset enhancement initiatives in Singapore, the US and UK worth approximately $850 million,” he adds.

This story first appeared on The Edge Singapore.