CAPITALAND Investment (CLI) is acquiring two industrial properties in Singapore through Extra Space Asia (ESA), a self-storage platform it manages.
Through the group’s logistics platform CapitaLand Sea Logistics Fund (CSLF), in December 2023 it also completed the acquisition of a 20-hectare freehold greenfield site in Bangkok, to mark CLI’s first logistics property in Thailand.
ESA’s latest acquisitions comprise a freehold industrial asset along with an industrial asset located near Holland Village, which is said to come with a “long land lease tenure”. Upon completion of these acquisitions, ESA plans to convert both assets into self-storage facilities.
Meanwhile, CSLF intends to develop the freehold site in Bangkok into an automated logistics campus with a gross floor area of about 2.5 million square feet. Comprising two buildings, the campus will be capable of accommodating 150,000 pallet positions in an automated storage and retrieval system.
It will be “Thailand’s largest standalone warehouse” which will be operated by Ally Logistic Property upon completion, said CLI on Wednesday (Feb 7).
Construction for the campus is expected to commence in the first half of 2024, with the first phase slated for completion in 2026.
CLI said the completion of the development of the Bangkok site will bring the total investment value of these three acquisitions – in addition to the joint acquisition of a lodging property by CapitaLand Wellness Fund in January 2024 – to a total investment value of about S$700 million.
This in turn is expected to boost CLI’s funds under management in South-east Asia to S$1.2 billion, said the real estate investment manager.
“These latest acquisitions are set to fuel the next stage of growth for each of these CLI-managed funds,” said Patricia Goh, chief executive of South-east Asia investment at CLI.
“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 added
Shares of CLI ended S$0.05 or 1.8 per cent higher at S$2.89 on Wednesday.
