CapitaLand China Trust Makes First Foray Into China Logistics With Accretive Acquisition Of Four Prime Logistics Properties
October 12, 2021 – CapitaLand China Trust (CLCT) announced the proposed acquisition of a portfolio of four prime logistics assets in Shanghai, Kunshan, Wuhan and Chengdu, which are key logistics hubs in China and are within CapitaLand’s five core city clusters, from unrelated third parties.
This marks CLCT’s first foray into China’s logistics sector and increases its exposure to new economy asset classes, following CLCT’s maiden purchase of a portfolio of five business park properties; both part of CLCT’s multi-stage portfolio reconstitution strategy to strengthen its long-term income diversification and resilience.
The Acquisition is based on an aggregate agreed property value of RMB1,683.4 million (approximately S$350.7 million) (US$258.6million), representing a discount of approximately 0.6% to the aggregate valuation by an independent valuer appointed by CLCT.
CLCT’s total cost of the Acquisition is estimated at approximately S$297.7 million, subject to post-completion adjustments.
CLCT intends to finance the acquisition through an optimal mix of debt and equity. Based on the proposed method of financing, the Acquisition is expected to be distribution per unit (DPU) accretive by 3.5%6 on a pro forma basis. The Acquisition is expected to be completed by end of 2021.
Read more here..
