CLAR to develop $94.8m logistics center in the US

The development is set to be completed in Q4 2025.

CapitaLand Ascendas REIT (CLAR) will acquire a land parcel at 178 & 179 Quality Drive in Summerville, South Carolina.

The land is strategically located on the US East Coast near Charleston, South Carolina, in an industrial submarket hosting manufacturing and assembly facilities for major corporations, including Boeing, Volvo Car USA, Mercedes-Benz Vans, UPS, and FedEx.

The land will be developed into a new logistics property, Summerville Logistics Center, with a total investment cost of approximately $94.8m (US$70.5m).

The acquisition is part of CLAR’s portfolio expansion in the logistics sector. The land will be acquired from Summerville Logistics Center Owner which is indirectly wholly owned by the developer PTLI Summerville Member.

CLAR, through its unit Charleston 1, has entered into a joint venture (JV) agreement with PTLI where it holds a 95% interest in the JV company and the remaining 5% held by PTLI. The REIT intends to acquire the remaining 5% interest. 

The development is set for completion by Q4 2025. CLAR intends to take full ownership of the property once it has stabilised.

The total investment cost comprises the REIT’s investment in the initial 95% interest, the estimated cost of acquiring the remaining 5% from PTLI, and other transaction-related fees and expenses.