CapitaLand Ascendas REIT to Buy Two Properties in Singapore

CapitaLand Ascendas REIT Management Limited of CapitaLand Ascendas REIT (CLAR), on Wednesday announced that it was planning to acquire 9 Tai Seng Drive, a Tier III colocation data centre, and 5 Science Park Drive, a premium business space property, both in Singapore for $543.43 million.

CLAR’s Executive Director and CEO William Tay said that the acquisitions stand as the cornerstone of CLAR’s multi-asset portfolio in matured, developed markets. These strategic additions will increase the share of Singapore in CLAR’s portfolio to approximately 67% of total assets under management.

“The two properties are 100% leased to reputable and well-established end users and tenants in the digital, e-commerce and financial services industries reflecting our commitment to steer CLAR’s portfolio towards the technology sector,” he said:

He added: “This aligns with CLAR’s strategy to leverage on global growth trends in technological advancement and digital transformation, while diversifying and strengthening its customer base. Both properties are expected to contribute positively to long-term returns with the potential for organic growth through rental uplifts and asset enhancement opportunities.”

Deepening Presence

The acquisitions will deepen CLAR’s presence in Singapore, particularly in the technology sector. The two properties will increase the value of CLAR’s Singapore portfolio by 6.6% to approximately $9.08 billion and the Singapore portfolio will account for 67% of CLAR’s total assets under management (AUM) of $13.66 billion.

The proposed acquisition of 9 Tai Seng Drive will significantly expand CLAR’s data centre AUM by 32.8% to approximately $1.48 billion, comprising 54% in Singapore ($780 million) and 46% in the UK/Europe ($700 million).

Two of CLAR’s data centre properties – Kim Chuan Telecommunications Complex and 38A Kim Chuan Road – are a five-minute drive away from 9 Tai Seng Drive. All three properties are located in Tai Seng Industrial Estate, a strategic location for cloud service providers, enterprises and other data centre players due to its power availability and dense concentration of networks and direct connections to leading network service providers including Global Tier-1 internet service providers and the Singapore Internet Exchange.

The proposed acquisition of 5 Science Park Drive will reinforce CLAR’s market leadership in the Singapore Business Space and Life Sciences segment. The total AUM of the segment in Singapore will increase by 4.8% to approximately $4.43 billion.

Science Park Drive is part of the “Geneo” life sciences and innovation cluster in Singapore Science Park 1, which includes the redeveloped 1 Science Park Drive, a premium business space property offering business space and wet-lab ready workspace, as well as retail, food and beverage amenities. 1 Science Park Drive was completed in March 2025 and had secured a high committed occupancy. CLAR owns a 34% stake in the newly completed property which comprises three buildings, 1, 1A and 1B Science Park Drive.

The proposed acquisition of 5 Science Park Drive further solidifies CLAR’s footprint and competitive positioning in the “Geneo” life sciences and innovation cluster in Singapore Science Park, a key technology and research & development hub in Singapore which is home to over 350 multinational corporations, global leading digital and technology companies, as well as laboratories6.

The acquisitions will provide stable income streams which contribute to the resilience of CLAR’s portfolio. In addition, it is in line with CLAR’s strategy to tap on the global trends of technological advancement and digital transformation, as well as diversify and strengthen its customer base.