Singapore-based CapitaLand Ascendas REIT (CLAR) has taken a significant step into the Japanese market by acquiring a 49% stake in a Tier 3 hyperscale data centre in the Osaka metropolitan area. The deal, valued at approximately ¥76.4bn ($480m approximately), marks CLAR’s first investment in Japan and expands its global data centre portfolio.
CLAR’s new acquisition strengthens its presence in developed markets with robust demand and connectivity. The 40.5MW data centre is fully leased to leading hyperscalers under long-term agreements, with annual rent escalation clauses. CLAR anticipates that the acquisition will generate a first-year net income yield of 4.3% before transaction costs and 4.2% after. The facility also offers potential medium-term power expansion of 5.4MW, representing a 13.3% increase in capacity.
With this addition, CLAR now manages 16 data centres across six developed countries, bringing the total portfolio valuation to approximately ¥316.4bn.
Partnership with Mitsui strengthens local presence
The remaining 51% stake in the data centre is held by a fund managed by Mitsui & Co. Realty Management, a consolidated subsidiary of the Japanese trading giant Mitsui. Hidehito Yamada, President and CEO of CapitaLand Japan noted that the over-the-counter transaction leveraged CLAR’s investment experience, domestic partnerships, and understanding of the Japanese market. The deal underscores the strategic importance of Japan as a developed market for CLAR’s global expansion.
Diversifying a global data centre portfolio
The acquisition enhances CLAR’s global portfolio, diversifying into Japan, which is the largest Tier 1 data centre market in the Asia Pacific region. The Japanese market is projected to grow from ¥4.02 trillion in 2024 to ¥5.4 trillion by 2029. CLAR’s investment aligns with this trajectory, supported by its sponsor CapitaLand Investment (CLI), which provides strategic direction and asset management expertise to optimise data centre operations in Japan.
CLAR’s broader global footprint
As Singapore’s first and largest listed REIT for business space and industrial properties, CLAR manages 226 properties across developed markets including Singapore, Australia, the US, the UK, and Europe. Its holdings cover business space and life sciences, industrial real estate and data centres, and logistics facilities, housing more than 1,700 tenants across multiple industries.
The expansion into Japan positions CLAR to capitalise on growing demand for hyperscale digital infrastructure while continuing to build a high-quality, diversified data centre portfolio in key technology hubs globally.