CapitaLand Investment (CLI) has acquired two industrial properties in Singapore and a freehold greenfield site in Bangkok, Thailand.
The industrial properties are acquired by Extra Space Asia (ESA), the Asia-focused self-storage platform managed by CLI, while the 20-hectare freehold greenfield site OMEGA 1 Bang Na in Bangkok is acquired by CapitaLand SEA Logistics Fund (CSLF).
The transactions follow CapitaLand Wellness Fund’s completion of the joint acquisition of a freehold lodging property in Singapore last month. Upon the completion of the development of OMEGA 1 Bang Na, the total investment value of these four acquisitions will be approximately $700 million, bringing CLI’s funds under management in the region to $1.2 billion.
ESA is set to expand its portfolio in Singapore with approximately 320,000 sq ft in gross floor area by the end of 1Q2024. Upon completion of the acquisitions, ESA plans to convert both assets into self-storage facilities in phases, offering air-conditioned units and facilities for wine storage.
Meanwhile, OMEGA 1 Bang Na is CLI’s first logistics property in Thailand. As a built-to-suit project, CSLF will develop a state-of-the-art automated logistics campus with a gross floor area of 2.47 million sq ft, capable of accommodating over 150,000 pallet positions in an automated storage and retrieval system.
Set to be Thailand’s largest standalone warehouse, the modern ramp-up campus will be operated by Ally Logistic Property when completed. Construction is scheduled to commence in 1H2024, with phase one expected to be completed in 2026.
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Looking ahead, these latest acquisitions are set to fuel the next stage of growth for each of these CLI-managed funds, says CLI Southeast Asia Investment CEO Patricia Goh.
“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,” she adds.
Shares in CLI closed 3 cents lower or 1.04% down on Feb 7 at $2.84.
