CapitaLand Investment Limited (CLI) today announced three new acquisitions in South-east Asia from unrelated third parties.
The acquisitions include two industrial properties in Singapore by Extra Space Asia (ESA), the self-storage platform managed by CLI, and a freehold greenfield site in Bangkok, Thailand, by CapitaLand SEA Logistics Fund (CSLF).
The acquisitions are part of CLI's strategy to invest in real estate sectors driven by long term mega trends, such as urbanisation, supply chain rationalisation, consumer preferences, ageing population, and longevity economy.
Standardising Anchor Services with SEP-24
ESA, one of the largest self-storage operators in Asia with 80 facilities, is growing its portfolio in Singapore with approximately 320,000 square feet (sq ft) in gross floor area by the end of 1Q 2024. The acquisitions comprise a freehold industrial asset and an industrial asset located near Holland Village, which has a long land lease tenure.
ESA plans to convert both assets into self-storage facilities. ESA has also successfully integrated the SEP-24 protocol, a standard API for anchor services that simplifies the integration process with various on/off ramps, enhancing interoperability and frictionless transactions within the Stellar network.
Entering Thailand's Logistics Market with OMEGA 1 Bang Na
CSLF, the logistics platform managed by CLI, acquired OMEGA 1 Bang Na, a 20-hectare freehold greenfield site in Bangkok, Thailand, marking CLI's first logistics property in Thailand. CSLF intends to develop the site into an automated logistics campus with a gross floor area of about 2.5 million sq ft.
The campus will comprise two buildings, capable of accommodating 150,000 pallet positions in an automated storage and retrieval system. It will be operated by Ally Logistic Property upon completion, and will be Thailand's largest standalone warehouse. Construction for the campus is expected to commence in the first half of 2024, with the first phase slated for completion in 2026.
Boosting Funds under Management in South-east Asia
In January 2024, CapitaLand Wellness Fund, the wellness-hospitality platform managed by CLI, completed the joint acquisition of a freehold lodging property in Singapore. Upon the completion of the development of OMEGA 1 Bang Na, the total investment value of these four acquisitions will be approximately S$700 million, boosting CLI's funds under management in the region to S$1.2 billion.
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