CapitaLand Ascendas REIT (CLAR) has announced plans to purchase DHL Indianapolis Logistics Center for $150.3 million. This acquisition represents a 4.1% discount to the independent market valuation of the property as of Jan 1, 2025. After transaction-related fees and expenses of $1.7 million, along with a $1.5 million acquisition fee paid to the manager, the total cost will be $153.4 million.
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The manager intends to finance the purchase through internal resources, divestment proceeds, and/or existing debt facilities, according to a Dec 17 press release.
Following the acquisition, DHL USA will sign a long-term leaseback agreement until December 2035, with options to renew for two additional five-year terms. The property, which is fully occupied and has a weighted average lease to expiry (WALE) of approximately 11 years, will provide income stability and strengthen the resilience of CLAR’s portfolio, says the manager.
The property, located in Whiteland, a submarket in southeast Indianapolis, Indiana, covers a gross floor area (GFA) of 979,649 sq ft. Completed in 2022, it features a fully air-conditioned, single-storey logistics building.
The acquisition will increase the value of CLAR’s logistics assets under management (AUM) in the US by 35.3% to approximately $587.5 million. With this acquisition, CLAR’s logistics portfolio in the US will expand to 20 properties across four cities with a total GFA of approximately 5.1 million sq ft, including the latest property in Indianapolis.
William Tay, executive director and CEO of the manager, says, “DHL Indianapolis Logistics Center is a strategic fit with our existing portfolio… This is CLAR’s first sale and leaseback acquisition in the US and including this Class A logistics property, modern logistics assets will account for 42.3% of our US logistics assets under management. With the long lease in place, this property will further enhance CLAR’s resilient income stream, and we expect the two new properties to contribute positively to our long-term returns.”