en.Wedoany.com Reported - CapitaLand Ascendas Real Estate Investment Trust (CLAR) has sold its Kim Chuan Telecommunications Complex at 38 Kim Chuan Road, Singapore, to an undisclosed third party for approximately S$200.4 million (US$155.2 million).
The sale price is double the S$100 million (US$77.46 million) CLAR paid to acquire the property in March 2005. The transaction is expected to be completed in the second half of 2026.
The ten-storey data centre building has a total floor area of 35,455 square metres (approximately 381,635 square feet). CapitaLand Group stated that since its acquisition in 2005, the property has been occupied by a single tenant, with the lease term expiring on 30 April 2026.
William Tay, Chief Executive Officer and Executive Director of CapitaLand Ascendas REIT Management Limited, said the sale reflects the company's disciplined strategy in portfolio optimisation and capital recycling, which will enhance CLAR's financial flexibility to invest in value-accretive opportunities and improve the overall quality of the portfolio. He noted that Singapore remains a key market for CLAR, and the company will continue to build a globally diversified portfolio, making strategic investments in Singapore and other developed markets supported by redevelopment and asset enhancement initiatives.
CapitaLand Ascendas Real Estate Investment Trust (formerly Ascendas Real Estate Investment Trust, or A-REIT) originally acquired the facility along with several other properties in 2005 in partnership with Singtel. Singtel had occupied the Kim Chuan Telecommunications Complex (KCTC-1) and the adjacent facility at 38A Kim Chuan Road (KCTC-2), but the company has been gradually vacating older facilities in recent years. In 2009, Singtel partnered with Ascendas REIT to develop the KCTC2 data centre in Kim Chuan.
CapitaLand Group stated that the net proceeds of approximately S$180 million (US$139.4 million) from the sale will be used to fund committed investments, repay debt, extend loans to subsidiaries, meet general corporate and working capital needs, or make distributions to unitholders.
CapitaLand Group Pte. Ltd. is a Singapore-based company focused on real estate investment, development, and management, ultimately held by Singapore's sovereign wealth fund Temasek Holdings. CLAR, as Singapore's first and largest listed commercial space and industrial real estate investment trust (REIT), was listed on the Singapore Exchange in November 2002 and currently owns over 229 properties, including more than a dozen data centres in Europe in addition to its facilities in Singapore.
