First UK logistics builds by CLAR to deliver four green-certified assets in strategic locations, increasing UK portfolio value by 43.5%
CapitaLand Ascendas REIT (CLAR) is making its development debut in the UK logistics market with a €237m investment in two freehold land plots in the East Midlands. The REIT will construct four best-in-class, single-storey logistics facilities totalling 135,600 m² across Manton Wood and Towcester. This move increases CLAR’s UK logistics asset value by 43.5% to approximately €812m and grows its UK portfolio to 10% of its total €11.6bn AUM.
The East Midlands, home to key logistics corridors like the M1 and major hubs such as East Midlands Airport, is the most in-demand logistics region in the UK, accounting for 30% of total take-up in 2024. By positioning in this "Golden Triangle", CLAR taps into tight supply conditions and strong e-commerce-driven demand. Manton Wood offers direct A1 and M1 access, while Towcester’s strategic location connects to over 83% of the UK population within a 4.5-hour drive.
“Embarking on our inaugural logistics developments in the UK marks a significant step forward in our strategy to scale up CLAR’s UK logistics portfolio,” said William Tay, Executive Director and CEO of the Manager. “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 S$1.2bn.”
The properties will feature deep yards, 15 to 18 metres eaves, generous trailer parking and target BREEAM “Excellent” certification, addressing the rising flight-to-quality demand from 3PLs, retailers and high-performance tenants. Once completed between H1 2027 and H2 2028, the assets will push CLAR’s green-certified UK logistics footprint to 26% of its GFA, with green-certified properties comprising 51% of its global portfolio.
With a stabilised first-year NPI yield of 7.3% (pre-costs), the acquisitions are expected to be DPU-accretive at 0.14%, making them an attractive proposition for income-focused investors. Additionally, CLAR has secured a waiver from MAS to acquire a nearby biodiversity net gain (BNG) land plot, showcasing its commitment to regulatory compliance and environmental stewardship, a critical advantage as ESG considerations take centre stage in institutional real estate strategies.
An aspect not explicitly highlighted in the announcement but of keen interest to developers and investors is the long-term strategic advantage these locations offer in decarbonising freight. Both sites are ideally suited to leverage upcoming electric freight corridor initiatives and growing demand for sustainable logistics infrastructure.
People mentioned
William Tay, Executive Director and Chief Executive Officer, CapitaLand Ascendas REIT Management Limited
Companies mentioned
CapitaLand Ascendas REIT (CLAR) – Developer and acquirer of UK logistics assets
CapitaLand Ascendas REIT Management Limited – Manager of CLAR
DHL Real Estate (UK) Limited – Seller of Manton Wood and Towcester land plots
MAS (Monetary Authority of Singapore) – Regulatory body that granted BNG land acquisition waiver
Image Source: Render (credit: CapitaLand Ascendas REIT)
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