The buyer is getting a 35,456 square metre beast of a building. High floor loading, serious power provision, the kind of specs data centres need. Singtel was the sole tenant for over two decades, with their lease ending 30 April 2026. The timing of this sale? Textbook. You don’t sell your HDB after upgrading the whole kitchen and before the new buyer moves in — you sell it *right then*, at peak demand.
Singtel out, market hot — CLAR didn’t wait. They sold at exactly the right moment.
And demand is peak right now. Independent valuers Savills put the property at S$151.8 million. CLAR sold it for ~32% above that. Think of it like COE prices — when everyone suddenly wants the same certificate, the price shoots past what any calculator says it should. Data centres in Singapore are that certificate today.
After costs, CLAR pockets roughly S$180 million in net proceeds. They’ve got options — pay down debt, redeploy into higher-growth assets, or distribute to unitholders. If they use it all to repay borrowings, leverage drops from 42% to 41.4%. Not dramatic, but it’s the direction that matters.
For FY 2026, don’t expect fireworks on NAV or DPU. Management’s been clear: no material impact. But this isn’t about this year’s numbers. It’s about freeing up capital for the *next* deal — whatever’s sharper, newer, more accretive to the portfolio. This divestment follows CLAR’s recent acquisition of a ramp-up logistics facility at 5 Tuas Avenue 5 for S$133.9 million announced about a month earlier. CLAR’s broader portfolio spans more than 229 properties, including around a dozen data centres across Europe.
CLAR has been on SGX since November 2002. First. Largest. Business-space and industrial REIT in Singapore. They know what they’re doing. Meanwhile, Singapore’s broader real estate market continues to demonstrate resilience, as seen in the S$810 million Thomson View en bloc sale, where UOL, Singapore Land, and CapitaLand joined forces to redevelop a mature estate into approximately 1,240 premium residential units.
Bottom line? Buying at S$100 million in 2005, selling above S$200 million in 2026, at a premium to valuation, with a 0.5% divestment fee baked in. That’s not luck. That’s patient, disciplined asset management doing exactly what it’s supposed to do.
