CapitaLand Ascendas REIT (CLAR) has sold a data center in Singapore.

The company this week announced it is divesting the Kim Chuan Telecommunications Complex at 38 Kim Chuan Road in Singapore, for a sale consideration of approximately S$200.4 million (US$155.2m) to an unnamed, unrelated, third party.

The sale price is double the original S$100 million (US$77.46m) CLAR paid to acquire the property in March 2005. The deal is expected to close by the second half of 2026.

The 10-story data center building totals 35,455 sqm (381635 sq ft). CapitaLand said that since its acquisition in 2005, the property had been occupied by a single tenant until 30 April 2026.

William Tay, CapitaLand Ascendas REIT Management Limited CEO and executive director, said: “This divestment underscores our disciplined approach to portfolio optimization and capital recycling. It will enhance CLAR’s financial flexibility to invest in accretive opportunities and strengthen the quality of the portfolio. Singapore remains a key market for CLAR as we continue to build a globally diversified portfolio. We will continue to invest strategically in Singapore and other developed markets, supported by redevelopments and asset enhancement initiatives, to drive long-term returns for unitholders.”

CapitaLand Ascendas REIT (formerly known as Ascendas Reit, or A-REIT) acquired the facility, along with several others, in 2005 from Singtel.

Singtel was previously known to occupy both the Kim Chuan Telecommunications Complex building (KCTC-1) and the neighboring facility at 38A Kim Chuan Road (KCTC-2), but the company has been in the process of exiting legacy facilities.

Singtel partnered with Ascendas Real Estate Investment Trust in 2009 to develop the KCTC2 data center at Kim Chuan. At the time, the telco said it operated the existing Kim Chuan Telecommunications Complex.

CapitaLand said the estimated S$180 million (US$139.4m) in net proceeds may be utilized for various purposes, including financing committed investments, paying down debt, extending loans to subsidiaries, funding general corporate and working capital needs, and/or making distributions to unitholders.

CapitaLand Group Pte. Ltd. is a Singapore-headquartered company focusing on the investment, development, and management of real estate, ultimately owned by Singaporean sovereign wealth fund Temasek Holdings.

CLAR was Singapore’s first and largest listed business space and industrial Real Estate Investment Trust (REIT); it was listed on the Singapore Exchange Securities Trading Limited in November 2002. Today, it owns more than 229 properties; as well as facilities in Singapore, it owns around a dozen data centers across Europe.