CapitaLand Ascendas REIT Management Limited, as the manager of CapitaLand Ascendas REIT, today announced its entry into the United Kingdom logistics development market through the proposed acquisitions of two prime freehold land plots in the East Midlands, one of the UK’s most established logistics hubs.

The sites, known as Manton Wood and Towcester, will be developed into a total of four state-of-the-art logistics facilities, one at Manton Wood and three at Towcester.

With an estimated total investment cost of approximately £203.5 million, this strategic move marks CLAR’s first foray into logistics property development in the UK, further expanding its international footprint and strengthening its portfolio’s income resilience.

Mr William Tay, Executive Director and Chief Executive Officer of the Manager, said: “Embarking on our inaugural logistics developments in the UK marks a significant step forward in our strategy to scale up CLAR’s UK logistics portfolio.  With positive structural drivers such as e-commerce and onshoring anticipated to sustain demand, these four new properties are set to boost the asset value of CLAR’s UK logistics portfolio by 43.5% to approximately S$1.2 billion.  Adding these best-in-class and green-certified logistics properties enhances CLAR’s logistics portfolio in the East Midlands, a key market in the UK’s logistics heartlands, and capitalise on occupiers’ demand for high-quality and well-located space. 

Including these two new projects, CLAR has a total of eight ongoing projects comprising developments, redevelopments and asset enhancement initiatives in Singapore, the US and UK worth approximately S$850 million that will create long-term value for Unitholders.”