On Wednesday, Singapore’s CapitaLand Ascendas REIT announced its intention to purchase a data centre and a premium business park property within the city-state for a total of S$700.2 million ($543.63 million).
The REIT indicated that these acquisitions will enhance the value of its Singapore portfolio by 6%, bringing it to approximately S$11.7 billion. The company further noted that both properties are fully leased to “reputable tenants,” ensuring stable and predictable income streams. The data centre is being acquired at a 2.2% discount compared to its average independent market valuation as of May 15, while the business park asset is being purchased at a 7% discount relative to its assessed value.
The demand from investors for data centre assets has significantly increased in recent years, fueled by the rapid expansion of digital services, cloud computing, and the requirements for AI-related infrastructure, all of which offer the prospect of long-term rental stability and substantial yield potential. As a result of this transaction, CapitaLand Ascendas REIT will see its total number of properties increase to 232, which includes 98 assets located in Singapore.
