Acquisitions are an effective method used by REITs to grow their distribution per unit (DPU).
And when it comes to acquisitions, CapitaLand China Trust (SGX: AU8U), or CLCT, has been hard at work.
CLCT’s current portfolio comprises 11 shopping malls and five business parks located across 10 Chinese cities.
The REIT has a strong sponsor in CapitaLand Investment (SGX: 9CI), the investment arm offshoot of CapitaLand Group that started trading in late September.
Because of the pandemic, CLCT announced an expansion of its investment strategy to include commercial and industrial properties in addition to retail malls.
This week, the REIT made its first foray into the Chinese logistics sector with the acquisition of four prime logistics properties for around S$350.7 million.
This acquisition is expected to be completed by the end of this year.
Here’s what investors need to know about this major transaction.
1. Increases proportion of New Economy assets