CapitaLand Ascendas REIT buys DHL Ohio hub for SGD $94.5m

CapitaLand Ascendas REIT has agreed to acquire a Class A logistics property in Canal Winchester, near Columbus, Ohio, from DHL in a sale and leaseback deal valued at S$94.5 million.

The property, known as DHL Canal Winchester, will be leased back in full by Exel Inc. d/b/a DHL Supply Chain (USA) under a long-term agreement. The transaction marks CapitaLand Ascendas REIT's second sale and leaseback deal with DHL in the US, following the DHL Indianapolis Logistics Centre deal completed in January 2025.

The manager, CapitaLand Ascendas REIT Management, said the acquisition would strengthen the trust's exposure to the Midwest, which it described as a key logistics market in the US. The site sits along Highway 33 and is less than 30 kilometres from Downtown Columbus and Rickenbacker International Airport.

Deal terms

CapitaLand Ascendas REIT has entered into a sale and purchase agreement through its indirect wholly owned subsidiary, Ascendas Reit Columbus 1 LLC. The seller, RES Canal Winchester I LLC, is a wholly owned subsidiary of DHL.

The purchase consideration of S$94.5 million, or USD $73.8 million, is payable in cash and is subject to closing adjustments. The manager said the price reflected a 3.3% discount to an independent market valuation of S$97.7 million, or USD $76.3 million, as at 1 January 2026.

The total acquisition cost is expected to be S$96.4 million, or USD $75.3 million. That figure includes an acquisition fee of about S$0.9 million and other transaction-related fees and expenses of about S$1.0 million.

CapitaLand Ascendas REIT Management said it intends to finance the total acquisition cost through a combination of internal resources, divestment proceeds and/or existing debt facilities. It expects to complete the transaction in the first quarter of 2026.

Midwest focus

The manager linked the acquisition to its stated strategy in US logistics. It highlighted the site's access to air, rail and road transport networks, including proximity to a cargo-focused airport and connections to major interstate highways such as Interstate 70 and Interstate 71.

CapitaLand Ascendas REIT's US logistics portfolio includes assets in Midwest cities such as Chicago, Kansas City and Indianapolis. The manager cited market factors for the Midwest, including limited exposure to international trade, minimal oversupply and a significant manufacturing base.

"The accretive acquisition underscores our strategy of selectively investing in logistics growth markets in the US with excellent connectivity and deep occupier demand, while leveraging our strong partner network to drive long-term value for unitholders. This acquisition marks CLAR's second sale and leaseback transaction with DHL in a key US logistics hub. Similar to our first transaction with DHL for DHL Indianapolis Logistics Centre which was completed in January 2025, DHL Canal Winchester will strengthen CLAR's resilient income with its long-term lease and built-in annual rental escalations, which is expected to further enhance the quality and stability of our US logistics portfolio," said William Tay, Chief Executive Officer and Executive Director, CapitaLand Ascendas REIT Management.

Property details

The logistics building, completed in 2024, comprises a single-storey facility with a gross floor area of 755,160 square feet. The property is freehold and is fully occupied.

The manager said the building has a cross-dock configuration, multiple points of ingress and egress, and LED lighting. It also has a clear height of 12.2 metres.

DHL will lease back the entire property under a lease running until December 2030. The lease includes options to renew for two additional five-year terms. The manager said the lease includes annual rental escalations of 3.5% and that the property has a weighted average lease expiry of about five years.

The acquisition will increase the proportion of modern logistics assets in the trust's US logistics portfolio to 52.4% by assets under management, on a pro forma basis as at 30 September 2025, according to the manager.

Market metrics

CapitaLand Ascendas REIT Management cited CBRE data describing Columbus as the sixth-largest logistics market in the Midwest, with an estimated market size of about 307.1 million square feet. It also cited CBRE figures indicating a vacancy rate of 7.0% in the third quarter of 2025 after declines over three consecutive quarters, alongside a 2.5% year-on-year increase in average asking rents for industrial space.

The manager pointed to the local economic mix in Columbus, including manufacturing, finance and insurance, professional and business services, and government activity. It also cited CNBC's 2025 ranking that placed Ohio fifth in its analysis of "America's Top States for Business".

Portfolio impact

On completion, the manager said the value of CapitaLand Ascendas REIT's US logistics assets under management will rise by 17.4% to about S$651.6 million on a pro forma basis. It also said its US logistics footprint will expand to 21 properties across five cities, with a total gross floor area of about 5.9 million square feet.

The manager put the first-year net property income yield at about 7.4% before transaction costs and 7.2% after transaction costs. It also said the acquisition is distribution per unit accretive on a pro forma basis, with an estimated uplift of about 0.012 Singapore cents, or 0.1%, based on an assumption that the acquisition had been completed on 1 January 2024.

The transaction adds another long-leased US logistics asset under a sale and leaseback structure, with CapitaLand Ascendas REIT Management pointing to additional renewal options beyond the initial lease term.