CapitaLand Ascendas REIT (CLAR) is selling the Kim Chuan Telecommunications Complex in Singapore for about S$200.4 million (US$155.5 million) to an unrelated third party.

The sale price is double the S$100 million (US$77.6 million) CLAR paid for the property in March 2005 and represents a 32% premium to its independent valuation of S$151.8 million as of 30 June 2026. 

“This divestment underscores our disciplined approach to portfolio optimisation and capital recycling,” said William Tay, CEO and executive director of CapitaLand Ascendas REIT Management Limited.

“It will enhance CLAR’s financial flexibility to invest in accretive opportunities and strengthen the quality of the portfolio.”

He added that Singapore remained a key market for CLAR. The REIT would continue investing in Singapore and other developed markets, including through redevelopment and asset enhancement projects.

CLAR expects to receive net proceeds of about S$180 million after divestment costs. The funds may be used to finance committed investments, repay debt, provide loans to subsidiaries, support general corporate and working capital requirements, or fund distributions to unitholders.

Had the proceeds been used to repay borrowings as of 31 March 2026, CLAR’s pro forma aggregate leverage would have fallen to about 41.4%, from the reported 42%.

Kim Chuan Telecommunications Complex is a 10-storey data centre with a gross floor area of 35,456 square metres. The property had been occupied by a single tenant from its acquisition in 2005 until 30 April 2026.

Had the sale been completed on 1 January 2025, CLAR’s net property income for the year ended 31 December 2025 would have been S$10 million lower, while distribution per unit would have decreased by 0.203 Singapore cents.

The divestment is not expected to have a material effect on CLAR’s net asset value or distribution per unit for the financial year ending 31 December 2026.

The transaction is expected to close in the second half of 2026. The REIT manager will receive a cash divestment fee equal to 0.5% of the sale price. 

The divestment follows a major portfolio expansion announced in March, when CLAR outlined S$1.4 billion (US$1 billion) of acquisitions in Singapore and Japan, including a stake in an Osaka data centre.