Industrial real estate continue gains from hub status, investor demand, CBRE says

This was highlighted by CLAR's $133.9m logistics asset deal.

CBRE said Singapore continues to attract both domestic and cross-border capital into the industrial sector, as CapitaLand Ascendas REIT (CLAR) acquires a logistics asset in Tuas for $133.9m, which was brokered by its CBRE’s Industrial Capital Markets team.

CBRE head of Industrial Capital Markets, Singapore, Loh Lee Fen, said investors are focusing on industrial assets with strong specifications, strategic locations and creditworthy tenants, amidst a shortage of quality stock in the market.

She added that high-quality industrial assets with long leases and stable income streams are particularly attractive to income-focused investors in the current low-interest rate environment.

Loh said Singapore’s industrial real estate market continues to benefit from structural drivers, including its role as a regional hub, safe-haven status amidst global uncertainty, and ongoing investment in advanced manufacturing and logistics infrastructure.

CLAR said following the transaction, its logistics portfolio across Singapore, Australia, the US, and the UK will rise to about $4.9b, accounting for around 26.2% of its total portfolio value.