CapitaLand Ascendas REIT expands UK logistics footprint

Singapore’s CapitaLand Ascendas REIT (CLAR) is expanding its logistics footprint in the UK with an S$350.1 mln (€234 mln) investment in two new development projects. 

Project Chestnut Hero

The company has acquired two plots of freehold land in the East Midlands to build four new logistics properties.
Specifically, CLAR will develop one single-story logistics property at Manton Wood and three at Towcester. This is the company's first venture into logistics development in the UK. With this addition, CLAR's total pipeline of ongoing development and redevelopment projects in Singapore, the US, and the UK now stands at eight, worth approximately S$850 mln (€568 mln).
William Tay, executive director and CEO, commented: “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$1.2 bn (€802 mln).  Adding these best-in-class and green-certified logistics properties enhances CLAR’s logistics portfolio in the East Midlands, a key market in the UK’s logistics heartlands, and capitalise on occupiers’ demand for high-quality and well-located space.”
This initiative aligns with the company's goal of capitalizing on the UK's growing e-commerce sector and shifting supply chain needs.
The new BREEAM "Excellent" targeted properties will attract quality tenants with features like high eaves (15-18m), ample parking, strong floors, and deep yards. The Manton Wood development is a 42,900 m2 single-story property, while Towcester will host three properties ranging from 20,700 to 38,300 m2. CLAR's UK green-certified portfolio to 7 properties (26% of GFA) and the total portfolio's green percentage to 51%.
CLAR will acquire two land plots from DHL Real Estate Limited by Q3 2025, and the development will begin in 1H 2026, with completion in 1H 2027 and 2H 2028, respectively.