CapitaLand Ascendas Reit Divests Kim Chuan Data Centre for S$200.4 Million
Industrial REIT | The Business Times | 16 Jul 2026
CapitaLand Ascendas Reit (Clar) is divesting Kim Chuan Telecommunications Complex, a 10-storey data centre at 38 Kim Chuan Road, for about S$200.4 million to an unrelated third party. The sale consideration is more than double the S$100 million that Clar paid for the property when it acquired it in March 2005 and represents a premium of around 32% to its independent market valuation of S$151.8 million as at end-June 2026.
Sale consideration
Over valuation
Acquisition price (2005)
Gross floor area
Deal Details and Strategic Rationale
Kim Chuan Telecommunications Complex has a gross floor area of 35,456 square metres and had been occupied by a single tenant since its acquisition, until the lease ended on April 30, 2026. The news of the divestment comes about a month after Clar announced the S$133.9 million acquisition of a modern ramp-up logistics facility at 5 Tuas Avenue 5.
William Tay, CEO and executive director of Clar’s manager, said the sale will enhance the Reit’s financial flexibility to pursue accretive investment opportunities while strengthening the overall quality of its portfolio. He added that Clar will continue to invest strategically in Singapore and other developed markets, supported by redevelopments and asset enhancement initiatives, to drive long-term returns for unitholders.
Financial Impact and Use of Proceeds
The Reit expects to receive net proceeds of about S$180 million after divestment costs. These may be used to finance committed investments, repay debt, extend loans to subsidiaries, fund general corporate and working capital requirements, and make distributions to unitholders.
Assuming that the net proceeds were fully used to repay borrowings outstanding as at March 31, 2026, Clar’s pro forma aggregate leverage would decline to 41.4% from 42%. Had the divestment been completed on January 1, 2025, Clar’s pro forma net property income for the financial year ended December 31, 2025, would have been S$10 million lower, while distribution per unit (DPU) would have decreased by S$0.00203.
The Reit manager said that the divestment is not expected to have a material impact on Clar’s net asset value or DPU for the financial year ending December 31, 2026. The sale is expected to be completed by the second half of 2026. Under the trust deed, the Reit manager is entitled to a divestment fee equivalent to 0.5% of the sale consideration, payable in cash.
Units of Clar closed unchanged at S$2.49 on Wednesday, before the announcement.
Frequently Asked Questions
How much is the Kim Chuan data centre being sold for?
The sale consideration is about S$200.4 million, more than double the S$100 million Clar paid when it acquired the property in March 2005. It also represents a 32% premium over the independent market valuation of S$151.8 million.
What will the sale proceeds be used for?
Net proceeds of about S$180 million may be used to finance committed investments, repay debt, extend loans to subsidiaries, fund general corporate and working capital requirements, and make distributions to unitholders.
Will this affect Clar’s DPU?
The Reit manager said the divestment is not expected to have a material impact on net asset value or DPU for the financial year ending December 31, 2026. Pro forma DPU impact is a decrease of S$0.00203.
When is the sale expected to complete?
The divestment is expected to be completed by the second half of 2026. Clar’s pro forma aggregate leverage would decline to 41.4% from 42% if proceeds are used to repay borrowings.
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