Diplomatic community
International buyers accounted for just 6% of domestic net lease investments for the year ended 3Q 2024, continuing the recent decline from the typical 2014-2021 norms1. Despite overall shrinkage in the foreign demand for net lease, Singapore-based CapitaLand Ascendas REIT (“CLAR”) announced a definitive agreement to acquire a 2022-built, 980,000 square foot, Class-A logistics facility in Whiteland, IN (45 Mission Road, Whiteland, IN 46184) via a sale/leaseback transaction with German logistics giant DHL for $115.8 million. The deal is expected to close in 1Q2025.2
The fully air conditioned, 40-foot clear height facility will be subject to an 11-year lease with DHL USA (signed at closing) including 3.5% annual rental escalations. Priced at a 7.6% going-in cap rate, the contract price equates to $118/sq. ft. with starting rents at approximately $9/sq. ft.
CLAR is Singapore’s first and largest listed Business Space and Industrial Real Estate Investment Trust (REIT). It was listed on the Singapore Exchange Securities Trading Limited (SGX-ST) in November 2002. As of June 2024, it owns 229 properties across three key segments: Business Space and Life Sciences, Logistics and Industrial / Data Centers. Assets are located across Singapore (97), Australia (34), the United States (48), and the United Kingdom/Europe (50).3
For those spinning their desktop globe, a Singapore REIT is set to acquire a German logistics firm’s facility in Indiana. The world is indeed flat!
Two turtle doves and a partridge..
CME Group’s FedWatch tool shows a 96% chance of a 25bps easing of the target Federal Funds Rate at this week’s Federal Open Market Committee meeting4. Perhaps more important, real estate participants will seek clues on forward guidance - will the dovish stance continue past the twelve days of Christmas?
-Sean Hostert