CapitaLand Ascendas REIT closed on a $94.5 million acquisition of a Class A logistics center near Columbus, Ohio, marking the real estate investment trust's second sale-leaseback transaction with DHL Supply Chain, a subsidiary of shipping giant DHL Group.
The deal strengthens CapitaLand Ascendas' foothold in the Midwest logistics corridor while adding a modern, fully occupied distribution center to its growing U.S. portfolio.
The company purchased the 755,160-square-foot DHL Canal Winchester facility, which DHL will lease back through December 2030 with two 5-year renewal options, according to a filing with the Singapore Stock Exchange, where the REIT is traded.
The property sits along Highway 33, less than 19 miles from downtown Columbus and Rickenbacker International Airport, a cargo-focused hub with direct flights to Asia, Europe and the Middle East. The facility connects to interstates 70 and 71, providing access to major markets across 10 states.
"This acquisition marks [CapitaLand Ascendas'] second sale and leaseback transaction with DHL in a key U.S. logistics hub," William Tay, CEO of CapitaLand Ascendas, said in a statement. "DHL Canal Winchester will strengthen [the REIT's] resilient income with its long-term lease and built-in annual rental escalations."
The purchase price represents a 3.3% discount to the independent market valuation of $97.7 million, according to the filing.
Columbus ranks as the sixth-largest logistics market in the Midwest, the REIT said.
Pressure from oncoming supply is easing in Columbus, and the availability rate ticked down over the past two quarters, according to CoStar analysis. Tenants occupied 8.8 million square feet more than they vacated over the trailing 12-month period — the largest total in two years.
The transaction delivers a first-year net property income yield of 7.4% pre-transaction costs and 7.2% post-transaction costs, according to CapitaLand.
DHL's long-term lease includes built-in annual rent escalations of 3.5%, providing income stability and growth. The weighted average lease expiration spans about five years.
The acquisition expands CapitaLand Ascendas' U.S. logistics assets under management by 17.4% to $651.6 million. The REIT now owns 21 logistics properties totaling 5.9 million square feet. The logistics portfolio is concentrated in Midwest markets, including Chicago, Indianapolis and Columbus.