1H 2026 Financial Results Briefing

I'm pleased to introduce the panel this evening. Mr. William Tay, our Chief Executive Officer. On his right, Ms. Khoo Li Sun, Chief Financial Officer. Mr. James Goh, Head of Portfolio Management for Singapore. Finally, Ms. Serene Ong, Head of Investment and Portfolio Management International. During the Q&A segment, if you have any questions, please raise your hands and the microphone will be passed to you.

Please try to keep to two questions each time, and if you would like to supplement with more, we will circle back to you. For those online, you may post your questions on the chat box. With that, I'll hand over the time now to Andrea, who will take us through the highlights of the briefings.

So these two factors more than offset the impact of about 500 million of divestments completed in 2025. On portfolio metrics, the portfolio occupancy is 89.1%. So this figure includes two new properties that were completed in the second quarter. So they are Summerville Logistics Center in the US, as well as 27 IBP in Singapore. So if we are to exclude these two newly completed properties, the portfolio occupancy will be 90.3%, which is at a similar level to the previous quarter of 90.5.

Rental reversions remain positive. So for the first half of the year, the average portfolio rental reversion is 8.5%. This reflects continued demand for our quality properties. And for the second quarter specifically, the rental reversion is 5.2%. On capital management, the gearing declined to 39.7% from 42% the previous quarter. This followed the equity fund raising in the first half.

To recap, the equity fund raising was to fund acquisitions, and we repaid some debt. So it was a 600 million private placement, as well as a 300 million preferential offering, both of which were well oversubscribed. So for the first half of 2026, the cost of debt is 3.5%. This is a similar level to the first quarter and 20 basis points lower than the first half of last year.

Our portfolio rejuvenation strategy remains central to how we grow and enhance the value of CLAR's portfolio. So it's anchored on accretive acquisitions, selective redevelopments and developments, as well as disciplined divestment. So the year to date, we have executed on all three. In the first half of the year, we completed more than 1.1 billion of acquisitions. And these are nine quality properties in Singapore, the US, Europe, as well as Japan.

So as mentioned, we completed the redevelopment of 27 IBP, as well as the development of Summerville Logistics Center. And lastly, in July, we announced that we are divesting Kim Chuan Telecommunications Complex for about 200 million, which is two times the original purchase price, as well as a 32% premium to the independent market valuation. So this sale price is meaningfully above the book value and reflects our ability to unlock value from the portfolio.

On the financial performance, comparing the first half of this year against the first half of last year, gross revenue and NPI increased by 6.7% and 6.2% respectively. This is due to acquisitions completed last year as well as this year, and the better performance from the Australia portfolio. So as mentioned, it has offset the impact of the divestments completed in 2025.

The distributable income was 8.6% higher, and DPU remains stable at 7.482 cents. After accounting for the larger unit base, mainly due to the equity fund raising in the first half of this year, as well as the first half of last year Thanks. Comparing this first half of this year versus the second half of last year, similarly, gross revenue and NPI increased by 2.8% and 2.2%, respectively.

Similarly, acquisitions, as well as the better performance of the Australia portfolio, drove the increase and offset the impact of divestments. Distributable income increased 3.5%, but DPU was slightly lower by 0.6%. It's mainly due to the larger unit base. So CLAN had actually declared and paid an advanced distribution of 3.75 Singapore cents on the 30th of April. So for the period from 2nd of April to 30th of June, we have declared a few or 3.732 cents.

Unitholders can expect to receive this distribution around the 8th of September. Good. In addition to the properties that we have acquired in the first half of this year, we are in the process of completing the acquisitions of two logistics properties in Singapore for about a total purchase consideration of about 600 million. So this brings the total year-to-date acquisition value to about 1.8 billion. Going through the list of these properties, you will notice that 10 of the 11 acquisitions are actually logistics and data center assets.

So these are asset classes that CLAN wants to continue to invest in. And about half of the value of the acquisition value are properties in Singapore. Because Singapore is a key market for our CLAN, and even as we build a globally diversified portfolio, Singapore is a geography that we continue to invest in. So, just to recap, if we were to look back to December 2022, the Singapore portfolio value was about 10.1 billion. And as of today, currently 30th of June, it has increased by about 30% to 13.1 billion. So we have continued to invest strategically in Singapore, and then since 2023, it's about 2.7 billion of acquisitions.

And just in 2026 alone, we will be completing about 883 million. Right. Going into a bit of details about the redevelop asset, 27 IPP. So we doubled the GFA as well as the NLA. And at the same time, we have also transformed the property into a modern business space asset, so it features your efficient column-free floor plates. We have also added amenities such as a sky garden and end-of-trip facilities.

The property is BCA Green Mark Platinum certified, and it's going to be directly connected to the future Jurong Town Hall MRT station. So it's very close to the Jurong Lake District, which is envisioned to be the largest business district outside of Singapore's central area. The current committed occupancy is about 19%. We are in discussions with our prospects, and deal recs are ongoing. So approximately 20% of NLA is in discussion.

Summerville Logistics Centre is a modern logistics asset in Charleston, South Carolina. So this asset widens and diversifies our US logistics portfolio, which is mainly currently in Midwest markets. So marketing is in progress, and similarly, viewings and lease discussions with prospects are ongoing. Yeah. The current list of ongoing projects as at the end of June is five, with a total estimated cost of 507.2 million.

We are working on a couple of other redevelopments in Singapore as well as overseas, and we will be sharing more details in future quarters when the details have been finalized. Just to highlight a new asset enhancement initiative that we are doing in Australia. So this AEI is at 125 Thomas Holt Drive. This property has three buildings, and we are currently doing some asset enhancement work at one of the building.

Besides refreshing the lobby, adding new amenities, we're also making the property more suited for multi-tenanted occupancy. The AEI is going to cost about 10 million Sing dollars, and it will be completed in the first half of next year. Sure. Moving on to capital management. As shared earlier, the gearing has come down to 39.7%. While it may be slightly higher than 6 months and 12 months ago, it's mainly because of higher borrowings to fund investments.

While our total assets have also increased to about 20.9 billion. The adjusted NAV per unit has also increased to 224 cents as of end of June. Our financial metrics remain strong. So the ICR is 3.5 times. Our percentage of fixed rate net is 70.1%. And our debt maturity profile is 2.5 years. Okay On natural hedge, we maintain a high level of about 73% for overseas investments.

With our latest investment into the Japan data center, we want to refresh everyone's memory that CLAR's portfolio now is diversified across five developed markets. So Singapore remains the majority at 65%, Australia, the US, and UK/Europe, each contributes about 9% to 12%. Japan currently is at 2%. In terms of asset class, it remains well-diversified across the three main segments, which is business space and life sciences, logistics, and industrial and data centers.

I'll move into occupancy. So we'll explain a bit about the individual geographies occupancy, starting with Singapore. So the overall Singapore portfolio occupancy is 90.1%. This includes 27 IBP, which is in the leasing-up phase. If you are to exclude 27 IBP, the overall portfolio occupancy actually remains stable quarter on quarter at 90.6%. For the US, similarly, the decline quarter on quarter was due to the addition of Summerville Logistics Center. If you are to remove this newly completed property, the portfolio occupancy actually remains stable at 85.9%, which is 20 basis points higher than the previous quarter.

This was mainly due to some new take-ups in Portland and Texas. Okay, in Australia, the decline was due to a lease expiry at 125 Thomas Holt Drive. So this is the business phase property in Macquarie Park in Sydney, where we are doing the AEI. So conversion works are underway, as I'll explain. And actually, we have already found a commitment for 60% of the vacant space, while we continue to market 40%.

Otherwise, the logistics portfolio in Australia, the occupancy remains stable and healthy at about 92.9%. Lastly, for UK/Europe, the occupancy remains stable at 93.1%. There is a property that we had shared last quarter that we are going to be redeveloping. So it has been decommissioned this quarter, meaning the third Q, and I will be sharing details for my future coming quarters.

So if you were to exclude this property, the occupancy actually remain at about 98, 99%. On rental reversions, it remains positive across all asset classes and geographies. And more importantly, we have revised the guidance to the positive high single digit range. Previously, it was mid-single digit. I'll move on to closing. So in terms of outlook for global environment, according to the IMF, GB growth in 2026 is expected to be slower than 2025.

But for us at CLAR, that's why our strategy remains relevant. So our portfolio remains diversified across five developed markets, and these markets have healthy fundamentals. So more importantly, with our strong balance sheet, we have ample financial flexibility. The portfolio remains resilient, and with our CLAR growth strategy, we believe that CLAR is well-positioned for stable and sustainable returns.

That brings me to the end of my presentation, and thank you for your attention. Before we move to the Q&A segment, I would just like to pass the time over to William for him to share a few words.

So this is just some of the new structure that we are embarking for the rest of the year and forward. Just a few comments. You have heard Andrew mentioned, we have done 1.1 billion of acquisition the first half. So we're on track to do 1.8 billion. If you recall, we still have a point six and over million, two properties in Singapore to be completed. We expect them to be completed within this month.

So I think in terms of growth, we are on track and it will be income generating once it's completed. So we have actually done about half in logistics from this, as well as half here in Singapore. It does show you that we are focused on Singapore as well as two asset classes, logistics and data center. And in second half, other than the two that's completing, two assets that will be completing, we also be seeing contributions from the newer new developments that will come on stream.

So Geneo will slowly give us more income over time. It should start coming in second half as well as next year Number two, 27 IBP, we have got 19% leased up, 20% in advanced negotiation. I think year-end, we probably can hit about 50, 60%. But bearing in mind, it does takes time to fill up space in a business park space.

Typically, we looked at two to three years to fill up space. But this being a new project, it does give us confidence. The leases that we have signed so far, they're all new to CLAR, a mix of relocation as well as expansion. So this is actually good news for us as we actually introduce new specs in IVP.

We can actually capture new demand. We are confident to be able to close those that's under negotiation. If I go back to Geneo, I think you have heard me mention as well that we have about 81% occupancy. It's been stagnant since the day we actually announced our TOP of 76. We went up to 81. We now have another 13% of space under advanced negotiation, and we hope to be able to close that in the next six months.

So again, that is actually new income generated. Summerville Logistics, which is in the U.S., we have completed. Marketing is on track. We hope to be able to start to sign new leases, and that will be income generating as well. So the newer developments and the redevelopments, you can see that as we talk about a cycle of decommissioning, and then we have a cycle that comes online with new income.

I think this is what we try to do. We continue to look at redevelopments. Andrew mentioned in the UK, we do have one warehouse that was vacated since first Q. We have actually decommissioned. We will start work in the next three months. Okay. There will be more details to be shared. The other point is that the first half, I think the key is actually the placement units, which the numbers have shown. Despite placement units, the DPU has been stable, which means that the contribution for those acquisitions are flowing in, and we got two more that's coming up this month.

The other point is also the concerns over any lease non-renewal, which is Singtel in Kim Chuan. We are actually able to divest them at a very good premium. So that's again, that we flush out. And we start to see that this will be completed perhaps in 3, 4Q this year. Okay. So the key looking at is the new income coming in.

The other one, big one, I suppose, before you ask, some lease renewal that will be up. I think all of us expecting the Shopee building. As I mentioned, lease has been in negotiation. We are finalizing the lease, so you can say that it's signed. So there's also one key renewal that we will do with a large rental reversion. So some of this we are confident of doing that, which is why we have raised our guidance for rental reversion to be high single digit.

So these are the few key things that I will raise, then we take questions. Yeah.

I'm thinking maybe second half be stronger. The two acquisitions you mentioned to get be completed, the strong reversions and the like. But obviously some of the patient occupancy is due to the fact that you have new buildings coming in. But how are you thinking about that year-end occupancy? Should we, on a raw portfolio basis, do you think we can get back up to the low 90s level?

Maybe some guidance on that. In terms of Singtel, obviously, Japanese, any updates on development there? And then obviously next year, some of your surface physical buildings. Any updates in terms of renewals or lease content? Thanks.

Compared to the rental that we have lost in Kim Chuan. You know the numbers. This is our annual report. Say 10 million a year. The next two acquisitions that will be completed is more than enough to offset any dips in terms of rental loss. Occupancy, I think will stay stable. Main reason is because of the new assets that we turned on, recommissioned.

These are big assets. As we add the GFA back into our base, take for example, 27 IVP. We have almost doubled the entire GFA. So a 20% occupancy is high compared to the older building because it's a large building Number two, maybe just a little bit more details on that. Before we tear it down, the rental was about $3, 280, $3 for that area in IBP.

Were you at a point in time because it's low occupancy, it's about probably about 2.5 to 3%. But now with a new completed building, and with new specs, today perhaps the market rental is about 350 in the area. We are hitting mid single digit, about $5. So that should give you a sense of why we want to do redevelopment, because it's a newer specs, newer location.

It give us ability. If not, if we don't do any redevelopment, 27 IBP will be, it is where it is, say, three years ago when we competing with all four buildings. So it does give us some ability to get a better mix. And we believe that being a new building, it can attract new demand. As I mentioned, all the leases that we signed, they're all new demand.

We have companies from engineering, health such companies. They're all new to us. So occupancy-wise, because at the end it's because a large building, as I mentioned, even 27, we hope to be close to about 50, 60% by end of the year. But there will still be vacancy of about 50%, which will then drag down the overall portfolio occupancy.

But we believe the overall portfolio occupancy will still be stable as we start to renew other leases. Right. Changi Park, which is in Tampines, no news yet. We were hoping that the government can give us an indication with regards to the height limit. We are still hopeful that because they did say it's 3Q, so we hopeful that it will come within this quarter.

And our plan there as you have, as you know, is obviously be higher probably with a higher height limit. We will ask for higher floor ratio and hopefully a redevelopment on it. If not, what else can we do with the asset will be considered. SF, we have started marketing, so I think your key concern is the one that is, leased by the colourful company.

I still can't say the name, but yes. Yes, we have started marketing. We believe that there is good interest around in SF. We understand that the vacancy is still high, 40% vacancy around in that area, in the Bay Area and SF. But because it's a new building, in terms of direct competition is probably vacancy of 13 to 15%.

And this is a fairly good building and our tenant or subtenant has actually invested substantial amount of fit-out. So we've been seeing, we've been hosting site visits. These are very positive site visits. So there are actually demand, not just one site visit but various site visits, including some prospects have seen the space multiple times. So we believe there are some good interest for that building.

Okay. Excellent. Thanks a lot for that. From the second half, they were covered.

But it more or less stabilize. For example, electricity cost, what we have signed, I think you know that we are contracted right up to end second quarter next year. And the rates that we have signed in terms of comparing to last year is already about 9, 10% lower. Next year's rates, we expect to be about 30% lower.

So for tenants working with us do enjoy better rates than they were before. Primary reason is because of the bulk purchase that the group embarks on together with other asset classes. And the size of us here in Singapore did give us an edge to be able to negotiate. And all the contract was signed before the war, which is why the hedging formula is actually very favorable for us.

It'll be good for our tenants. Right?

Even in Changi Business Park, where it's OCC is near MRT station, it always has a better leasing and more attractive. So typically, FS-wise, in terms of how we foresee or predict or forecast occupancy, about three years to be able to stabilize. But based on our pipeline today, we think that we could hit about close to 50% towards the end of this year.

50% means that we actually filled up the whole building, the size of the whole building. We will start to see more traction as tenant starts to move in. Right. That will be helpful. On your question about any other redevelopment opportunity, I think the most likely one will be across the road. I've shared before, is Acer building. Some of the vacancies that we see in our numbers is also because we start to move tenants out. So Acer, we have brought down the tenants to about 20%. So we will be embarking on the redevelopment once we start to fill up 27 IBP.

Again, that building will be directly connected to the MRT station. And we hope to be able to bring in, just like Geneo, bring in more retail F&B offering, to give a good attractiveness to that node there, which is 27 IBP at Acer 29 IBP. So that's probably the closest. The rest of the building, you can say that we have opportunities around the Science Park, but the buildings are still fairly new. Right.

I think the key is that we want to be able to get higher prop ratio, and with a new infrastructure that's invested by the government in relations to MRT and connectivity, then we can actually ask for higher rental. If for any building that nothing as much changes, tearing it down, giving it new specs, it's tough to say increase of $3 to $5. Right. So there must be some ingredients in there.

Great. Thank you. So on your margins question, I'll answer more generically rather than specifically by geography, because it really depends on the lease structure. If it's like a triple net lease and it's single-tenanted, those margins tends to be very high, typically above 90%, sometimes as high as like 97, 98%. If we talk about a multi-tenanted building, on average it's in the 70s, can be low 70s, mid-70s, thereabouts.

And if you talk about data centers, data centers margins tend to be lower on the headline numbers, largely because of the high elect. Right. We record both the electricity revenues as well as the OpEx. But if you strip that out, again, it normalizes, again, depending on whether it's a colo or if it's a co-ensure. So really, our numbers, if you look by country or at the group, is really a blend of these three separate components.

I would say by and large, margins, particularly for multi-tenanted buildings, have more or less stabilized because previous years, post-COVID, with the hike in electricity, I think a lot of the, across the industries, everyone saw their margins compressed, largely again because of the higher elect revenues being recorded. And at the same time, higher elect expenses. So we are more or less past that, so yeah.

Hope that answers the questions. Interesting. Okay. We will move on to the next question.

Now that you have talked about $1.8 billion in acquisitions, what should we be expecting for the rest of the year? Should we be looking at more selective divestments or are you still pursuing acquisitions in a big way? Yeah, that's all.

And our anchor tenant is government. So they have taken most of the space. They're all fitting out. They'll start to move in next year. During this time, while we are handling all these fit-out and handing over of the sites, we still continue marketing But I suppose your expectation is that rental should go up, which is what we have asked for because now that we've hit about 80, 81%, typically, as you looked at the entire pricing strategy, we may give more rent-free as they first come in.

Subsequently, when it hits stabilize, obviously we ask for what the market is asking. And honestly, Geneo and our newer buildings today, they are leading the market in terms of rental. So we like to be able to close higher than where it is. And out of the 19% vacancy, we have 13% right now in the advanced negotiation. So we are hopeful that it will stabilize.

It's in high 90s towards the end of the year. Correct. On your question about investment divestment, we are still focused to close the two assets that we have acquired and announced and acquired. As you know, in Singapore, we need to go through regulatory approval. In this two case, it's actually JEC, so we are hopeful that this consent will be given to us very soon.

Even for our Kim Chuan divestments, because it's not JEC site, but we still need SLA to approve, so there will still be regulations that we need to go through. So in terms of investments, I think we still look at investments, but this is probably not the key for us right now for second half. What I would say that our focus is more divestment.

As you have heard me mentioned, we have about 300 to 500 million divestment. Kim Chuan, this asset divestment came very fast. When we got a good offer, we took it, but we are still working on the 500 million divestments. So if there is good interest, we believe that we can push the divestment up higher. If not, at least I think we have good interest for at least about 300 to 500 million right now, which we have worked on.

That will be helpful for us in a few things. Number one is to, in terms of leverage, in terms of debt to EBITDA, in terms of ratio, to be able to bring it down. Even with the two assets to be acquired plus the divestments, I think our leverage will stay about 40-ish. Correct. So we hope to be able to bring it down, which is key for us.

And we still want to be able to focus. Why we want to do this? We want to focus on reconstitutions. When there's a portfolio development, redeveloper, we will push ahead. If there's interest for divestment, especially in this market, as in Singapore and overseas. Europe and Singapore continue to see capital flow, which we hope to be able to capture some of this capital with some of divestment. As you have seen in our Kim Chuan, we can actually divest in a very good premium, which is good for trust.

Okay.

Answers your question? Yeah. Thank you.

Is there one more acquisition pending or is it not pending and is it not going on at this point of time? My third question is, if I notice on your financial statements, the credit loss for this year has gone up from 1 million to 3 million. Not a big number, but are you seeing some increased tenant defaults or delay payments in attendance? And if so, which market and what reasons?

Thank you. On that point, the Summerville Logistics Center, because

So we're hopeful that in the coming quarters we can announce something. Yeah. Will it be a fully stacked suit? I mean, 100% occupancy of the single tenant or it might be- I'm so sorry. It will be multi-tenant. Yeah. Because the market demand currently, the market is probably in the smaller units, so we probably have to subdivide the warehouse.

So Charleston it's not a big market. We went in with the idea that it's actually, there are manufacturing industrial activities. And you have heard us mention when we went in or even between that time, typical leasing up is very short. It was very bullish logistics market. But having said that, we have actually expected that because it's a smaller market, we will need time after completion to be able to fill the space.

It's half a million square feet. Half a million in the market. It's not huge, but each of the tenant that comes in could be 100,000, 200,000. So it's likely to be a multi-tenanted facility, not a single tenant. But the key there for us is that as we looked at ... the logistics, especially US and even in Europe.

You have heard me mention that we want to be able to build modern warehouses. As we acquire new modern warehouses, we also want to be able to develop modern new houses. So for this facility, we have picked a location or other city that is well-connected both by the shipping route as well as road network. So we are hopeful to be able to lease out the space.

On your second question, yes, we did say that during our EFRs two new acquisition. We have announced one, which is the Tuas Logistics, which is the bigger one. The other one, actually in our use of proceeds that we have actually reallocated. We are not proceeding with that. Primary reason is because during due diligence, we are not comfortable, so we have actually decided to drop that.

So the two, the bigger one is $130 million, is this, the Tuas. We're hoping to complete this point. Okay. Other question. Okay.

Can you give us a current update of which sector, tenant sector kind of thing? It's mainly in the logistic. Okay. Thank you.

Maybe just to add on to that, as we hear about the new tariff being reintroduced. We did our rounds. I don't think it's anything of key concern to any industry. As we mentioned previously, majority of tenants here in Singapore, take for example our lease renewal to the rest of second half the year is about less than 10% to be done. Our 10% is about 500 over leases.

Mm. The main one, I think I mentioned to you, Shopee, is one key one. The rest, I think we will be able to see the leases being renewed. But payment-wise, I don't think there's any key concerns. Thanks, BJ.

And the remaining, I think you have done some refinancing, right? So the remaining that you are current CIR dating.

Perhaps not full occupancy. I think there's still one tenant. Still sort of five can be occupied. True. So yes, I think we are on track. We are happy with our investment in 5 Toh Guan. Similarly, towards Clementi Loop Logishub, that we have taken on a new construction. Interest is there, so we are talking to some interested prospects.

We are hopeful that if all turns out well, we may be able to get some pre-commitment. But again, if you know our style, we're not going to commit to any occupancy. So even if any statistics that you see, you will still be zero until you get the OP. So I think for logistics, it's quite clear. While we think that it has stabilized here in Singapore, it's no longer that bullish. But good assets, I think we can command the kind of renter that we want, especially being in Jurong East or in Clementi.

Right? 27 IBP, we believe income will start to come in towards, perhaps towards second half. Just like June, it took about a year. We believe as slowly as company starts to move in, we start to see renter perhaps three to six, six or 12 months down the road. Underwriting- I think it's above our underwriting. Frankly speaking, even when we did our redevelopment, I don't think we was expect that we can hit $5.

Similarly to Geneor, you all were asking me, "Is it $5?" Even Geneor last time you asked me, "Is it $5 or $6?" Again, I've mentioned that, yes, cross beyond that $5, $6 even for GM. So it's above our underwriting. Interest cost guidance? Unreal. That cost would still be expected around the 3.5 tab we have yet to take.

As for the refi for this year is we need the same dollars. So refi is done. I think you saw it, about 160 mil I spent Singapore dollars. Okay, thank you. Sounds good. That talk was good to hear 100%. Same question- Close. Close. Close up. You need to file a canteen operator. Okay. Just same question, like income, when is it coming through?

When should we expect? Yeah. Come back with news to refresh your work. I think it's very end. Those are leases because this was completed last year. Yeah, will start to come in. Okay, thank you.

But sorry, development. Yeah. Yeah. Thanks.

In terms of you, good question. Yes, I think even for Kim Chuan based on our divestment value is about five, and it has to be fully leased. Assets that we want to divest typically has a mix of occupancy. And we do any of this transactions are like what we've done last year, you see that there may be one or two that's with good occupancy. But the rest of assets may be 30%, 40%, 50% occupancy. So in terms of actual impact for NPI loss, it will still be there but you've correspond to a redevelopment that we have to ramp up.

So that will probably give you a sense that for redevelopment, if you ramp up even for our 27 IBP right now, for leases that even for 50%, NPI is probably about, say, 3%, 4%. But as you've leased up, you hire renter, I think yield is one. But in terms of NPI contribution is very different from where it is before it was redeveloped.

So that's actually the kicker. And also when we have able to get higher plot ratio, there's another new income that will contribute. So I hope I answered that question. So even for this, it's about 5%. Right? Yeah. And let's assume that I can lease out 100% to a single tenant. I guess maybe when you do your budgeting for second half, may you account for this to impact this second half, if you like it to be better than first half.

Is that that's what I'm trying to understand. Okay. From divestments, if you look at even you work and announce, it takes time before it completed. So whatever NPI will still stay. For example, even Kim Chuan, we are expecting to close complete in four Q. Right? Having said that, it's vacant. If it is income contributing, it'll be income contributing second.

Then, one last question. Any major redevelopments or assets that you're looking to take offline? Other than what has been announced. Is Paulley's Lane, which is in the UK. So that was vacated or vacant since 1Q. So that's the only one.

Generally, in terms of market as I mentioned It's almost three, four years ago when we're looking at investments, when interest rate goes up, our price expectation is based on the expanded cap rate. If you ask us today, while we haven't seen real transactions that has shown that the cap rate expanded, even for us, if there's any opportunities that come across our desk, we will be asking for higher cap rate. Right.

Interest has gone up to about 3% compared to where it was. These acquisitions we have done earlier, we have locked in our rates, so everything has been locked in. In terms of MPI contribution, in terms of appreciation, it's already locked in. Right. For next acquisitions, we did this about 4.3%, if you remember. So we do expect that any buyer will take guidance from this, right? And this is a huge transaction in the Japan market.

But having said that, one other asset class we think that is getting really more challenging is logistics. While we say that the cap rate has expanded, but because there is rental escalation, which we don't see the last two decades, right? I think companies or rather, investors are still prepared to buy logistics at where kind of cap rate it was. So perhaps even below 4%, some are still prepared to do. But in terms of data centre, I think it has normalized to above four, so I think that's actually where the market will be asking.

Does that answer your question? Yeah. And would you be holding back on Japan or you'll continue to- We're still looking at investments, opportunities, but I think it's getting further away from where we can close. Yeah. And then, do you have any update on the UK data centre? Okay. I'd rather not say. Excuse me? But there's nothing to say about UK.

Yes. For the UK data centre, I think the challenge is still at the planning, because it's taking a long time for the UK power network to give us confirmation. But that being said, I think there are plans to be made, so in probably the next quarter or next six months, we should have something. Something else.

I see. So you're comfortable doing even without an upgrade of the power? So I think I mentioned this previously. 60 megawatt is there. We are uncertain when the 35 will come, right? So we're waiting and waiting and waiting, which is- Time ... decisions that we have to take at a certain point in time. Right. We have to take a decision whether we got to go ahead to redevelop whatever existings we have.

25 today is still very attractive, to be honest. Even I don't get the 35, it's still very attractive. So we have, if you remember, the main thing is we have our plans already for a single big site. Right. Now the change is that we are looking into two phase. Right. And the two phase means that first phase, 25 or whatever the government can give today, we will take.

The other remaining, we will take some time. We know that it will take some time, but instead of waiting for that some time to be able to confirm in terms of our marketing, we have actually started to look at the two phase. Yeah.