CapitaLand Ascendas REIT to invest $350m in UK logistics land acquisitions

The sites are located in Manton Wood and Towcester.

CapitaLand Ascendas REIT Management Limited, manager of CapitaLand Ascendas REIT (CLAR), has announced plans to acquire two freehold land plots in the East Midlands, UK, to develop four new logistics properties.

The two sites, located in Manton Wood and Towcester, will host one and three logistics properties, respectively, with a total estimated investment of approximately $350.1m (£203.5m).

“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 $1.2b,” said William Tay, executive director and chief executive officer of the Manager said.

Construction is expected to start in the first half of 2026, with completion between mid-2027 and late 2028.

The planned logistics properties will feature modern, efficient design with building specifications such as 15 to 18-metre eaves, extensive trailer parking, high floor loading capacity, and deep yards to optimise operations.

The total gross floor area will be approximately 135,600 square metres (about 1.5 million sq ft).

Both developments aim for BREEAM “Excellent” certification, incorporating sustainable features including solar photovoltaic systems, roof lights for natural daylight, and electric vehicle charging stations.

These additions will increase the proportion of CLAR’s green-certified logistics assets in the UK portfolio to 26% by gross floor area.

The developments are expected to deliver a first-year net property income yield of approximately 7.3% before transaction costs and be accretive to Distribution per Unit (DPU) by 0.14%.

The land will be acquired from DHL Real Estate (UK) Limited, with the deal expected to close in the third quarter of 2025.

The total investment includes land acquisition costs of $18.9m (£11.0m) for Manton Wood and $78.1m (£45.4m) for Towcester, alongside development costs and related fees.

Funding will come from internal resources and existing debt.