SINGAPORE: CapitaLand Investment acquires three properties in Singapore and Thailand. The acquisitions include two industrial properties in Singapore, managed by Extra Space Asia (ESA), and a freehold greenfield site in Bangkok, Thailand, acquired by CapitaLand SEA Logistics Fund (CSLF), The Edge Singapore reports.
CapitaLand Investment’s recent acquisitions come after the CapitaLand Wellness Fund concluded a collaborative purchase of a freehold lodging property in Singapore last month.
The ESA-managed industrial properties, set to expand CLI’s footprint in Singapore, will see approximately 320,000 sq ft in gross floor area added to ESA’s portfolio by the end of the first quarter of 2024.
The plan is to convert these assets into self-storage facilities, offering air-conditioned units and amenities for wine storage, thus meeting the growing demand for storage solutions in the region.
In Thailand, CLI is venturing into the logistics sector with the acquisition of the OMEGA 1 Bang Na site.
CSLF, responsible for this acquisition, plans to develop a cutting-edge automated logistics campus spanning 2.47 million sq ft. The campus will boast advanced features, including an automated storage and retrieval system capable of accommodating over 150,000 pallet positions.
Upon completion, the OMEGA 1 Bang Na site is slated to become Thailand’s largest standalone warehouse, operated by Ally Logistic Property.
Construction is set to commence in the first half of 2024, with the first phase expected to be finalised by 2026.
The total investment value of the three acquisitions, plus the one from last month, amounts to approximately S$700 million, amplifying CLI’s funds under management in the region to S$1.2 billion.
Patricia Goh, CEO of CLI Southeast Asia Investment, anticipates that these acquisitions will catalyse the next growth phase for CLI-managed funds.
Goh said, “By combining our skill sets of value creation with best-in-class operating capabilities and drawing on the sector-specific industry knowledge of our capital partners and operators, these funds are poised to contribute positively to our fee-related earnings and deliver sustainable returns to our investors.”
On the stock market front, shares in CLI closed at S$2.88 on February 7 at 4:47 p.m. SGT. /TISG