# CapitaLand Ascendas REIT (CLAR) - Proposed Acquisition of 9 Tai Seng Drive & 5 Science Park Drive (~S$700M) - **Event**: Analyst Briefing on S$700M Acquisitions of Data Centre and Prime Business Park - **Date**: 24 June 2025 - **Webcast URL**: [CapitaLand Ascendas REIT Webcast Details](https://investor.capitaland-ascendasreit.com/webcast_details.html?videoID=1088599764) - **Vimeo Video ID**: `1088599764` - **Duration**: 00:00:00 to 00:55:44 (1040 cues) ### Panellists & Management: - Mr. William Tay - Executive Director & CEO - Ms. Khoo Li Sun - CFO - Mr. Ram - Head of Investments - Andrea Ong - Director IR ### Participating Analysts & Journalists: - Mervin Song (Analyst, J.P. Morgan) - Derek Chang (Analyst, Morgan Stanley) - Dale Lai (Analyst, DBS Bank) - Rachel Tan (Analyst, Macquarie) - Vijay Natarajan (Analyst, RHB) --- ## Table of Contents - **[00:00:00]** Acquisition Presentation: 9 Tai Seng Drive & 5 Science Park Drive - **[00:13:34]** Q&A - Question 1: DPU Accretion & 9 Tai Seng Drive Power Capacity (Mervin Song, J.P. Morgan) - **[00:22:28]** Q&A - Question 2: Shopee Long-Term Commitment at 5 Science Park Drive (Derek Chang, Morgan Stanley) - **[00:30:25]** Q&A - Question 3: Acquisition Yields & Placement Equity Sizing (Dale Lai, DBS Bank) - **[00:38:49]** Q&A - Question 4: Debt Headroom Post-Acquisition (Rachel Tan, Macquarie) - **[00:47:07]** Q&A - Question 5: Tai Seng Data Centre Competitive Dynamics (Vijay Natarajan, RHB) --- ## Verbatim Transcript (Audited & Verified) ### Acquisition Presentation: 9 Tai Seng Drive & 5 Science Park Drive **[00:00:00] Andrea Ong (Director, IR)**: Okay. Good morning everyone. Um, I guess you can all hear me. Um, I'm Andrea from Investor Relations, so welcome to Capital n Asanders Reeds briefing for the proposed acquisitions of 9 Tai Seng Drive and 5 Science Park Drive, which were announced earlier this morning. So this briefing will start with a presentation on the overview and merits of the acquisitions, after which there will be a question and answer segment. **[00:00:22]** So during the q and a segment, uh, please select the raise hand button. If you would like to ask a question, just wait for your name and company to be called before you unmute yourself, uh, to speak. Okay. Before we begin, let us just, uh, let me just introduce who is on the panel today. Okay. So they are mrt, CEO of CLAR. **[00:00:48]** Good morning, Ms. Coli, CFO of CLAR Ing, head of Capital Markets and investor relations. Morning, And Mr. Ram Rajan, head of investment. Hello. Good morning. Okay, and with that I'll hand the time over to keeping who will begin the presentation. Hello. Good morning everybody. We are pleased to announce the acquisition of two properties in Singapore, 9 Tai Seng Drive, and 5 Science Park Drive. **[00:01:27]** Our discussion today will cover the following overview of the proposed acquisitions rationale and benefits of the acquisitions and conclusion. Both the two properties, 9 Tai Seng Drive and five sign Spot Drive are located in Singapore. The acquisitions of these two properties totaling about $725 million will further anchor class portfolio in Singapore. These strategic additions will increase the share of Singapore in class portfolio to about 67% of a UM. **[00:02:14]** Uh, we have some, uh, quick overview of the two dislikes here. Night Tai Seng Drive is a colo location data center located in the Tyson Industrial Estate 5 Science Park Drive is a business park property located at the gateway of Singapore Science Park one. It is part of the Geno life sciences and innovation cluster. It is next to the recently completed one Science Park Drive, uh, which has direct connection to the Cambridge MRT station. **[00:02:47]** Both the properties sit on long land lease tenor. They are about six years old with good specifications. Both properties are a hundred percent lease to reputable and well established end users and tenants in the digital e-commerce and financial services industries. NPI use are attractive at about 7.2% for izing and about 6.1% for five sign spot drive More details in the following slides. **[00:03:27]** Izing drivers, so this is a six story co-location data center located in the Tyson Industrial Estate, a strategic location for cloud service providers, enterprises, and other data center players due to its power, availability and good connectivity. The data center has good specifications and has achieved B-C-A-I-M-D-A Green Mark Platinum certification. The co-location data center is fully committed by well established end users in the digital e-commerce and financial services industry. **[00:04:13]** With a weighted average lease expiry of 4.4 years. The property sits on a long land tenure of about 30 years. The purchase consideration is $455.2 million, which is a 2.2% discount to market valuation after including transaction costs. The total acquisition cost is $463.6 billion. The NPI yield is an attractive 7.2% pre transaction cost or 7.1% post transaction cost. **[00:04:56]** Moving on to 5 Science Park Drive. So this is a premium six story business park property located at the gateway of Singapore Science Park one. It is part of the Geneo Life Sciences and Innovation cluster. The property is also about six years old. It features modern business space specifications and has achieved BCA Green Mark Platinum certification. The Business park property is fully occupied by shopee, which is one of the largest pan regional e-commerce platform is Southeast Asia and Taiwan. **[00:05:39]** With significant presence in Latin America, the property serves as Shopee Regional headquarters. Land Turner is long at about 56 years, the purchase consideration is $245 million. This is a 7% discount to market valuation. Do note that the purchase consideration of 245 million includes a 30 million deferred consideration, which will be paid only in November, 2026, excluding the 30 million deferred consideration, the NPIU is 6.1% pre-transaction cost and 5.7% post transaction costs. **[00:06:32]** Now let's take a look at how these two acquisitions will impact class portfolio. Class A UM will grow from $16.9 billion to $17.6 billion. The two properties will further anchor CLAR in Singapore with Singapore accounting for about 67% of a UM. The acquisition of nine Tyson Drive will significantly expand class data center footprint by about 33%, uh, to about $1.9 billion. **[00:07:18]** Now, within the data center portfolio of $1.9 billion, Singapore will count for slightly more than half 54% with a balance in UK and Europe. As you are all aware, Singapore is a key destination for regional data center demand from financial institutions, e-commerce cloud and international enterprises. Singapore has one of the lowest core location vacancy rate of about 2% due to healthy demand and limited new supply. **[00:07:53]** We expect this favorable demand supply dynamic to continue due to data storage needs and adoption of cloud services by enterprises as well as artificial intelligence and digitalization. Next, the acquisition of five Science Spot Drive will increase our Singapore business space and life science a UM by about 4.8% to $5.7 billion. Singapore Science part one, which is shaded in the turquoise color in the pie chart, uh, the share of, uh, science part one a UM will increase 30%, 31% to about $1.1 billion. **[00:08:45]** So as mentioned earlier, five Science Part Drive is part of gen life sciences and innovation cluster, which includes one Science part drive, which was recently redeveloped and completed in March, um, 2025. And it has achieved a high level of, uh, commitment occupancy. The acquisition of 5 Science Park Drive further solidifies class footprint and competitive positioning in Geneo and Singapore Science Park. **[00:09:21]** I will jump to slide 16, um, to discuss the, uh, the organic growth potential of the properties. The properties are well positioned to capture organic growth opportunities in the near and also longer term for 9 Tai Seng Drive. The contracted LO co-location rates are estimated to be approximately 30% below comparable market co-location rates. There are opportunities for organic growth here through potential renter uplifts when these co-location agreements are due for renewal due to the favorable demand supply dynamics. **[00:10:07]** In addition, NY Tai Seng Drive offers potential in the mid to long-term for revenue growth via the expansion of existing IT capacity, including higher power usage subject to obtaining the relevant approvals from the authorities. As for 5 Science Park Drive, there is also opportunity for organic growth through potential renter uplift. When Shopee existing lease term ends in 2026, shopee existing rent is approximately 15% below current comparable market rent in the one north and the Singapore Science Park, uh, districts slide 15, which is, um, the DPU acquisition. **[00:11:00]** Um, the proposed acquisition of 9 Tai Seng Drive and five science part drive are DPU accredit on a standalone basis. So if you look at the first row 9 Tai Seng Drive, the CC acquisition is about 1.24%. In the second column for 5 Science Park Drive, the accretion is about 0.14%. Therefore the total accretion for the two acquisitions is about 1.3599999999999999%. **[00:11:37]** Please, uh, let me elaborate further on the five signs. Park drive, um, row. The second row, the 0.14% aggression is based on the purchase consideration of 215 million, which excludes the 13 million different consideration, which is payable in November, 2026 When we include the deferred consideration of 30 million into the finer price. And based on the incremental effects of the estimated renter reversion that we discussed in the earlier slide, the occlusion is expected to be higher at about 0.23% as compared to the 0.14% in the first year. **[00:12:34]** So this is illustrated in the box on the extreme right. Okay. Finally, in summary, the acquisitions of 9 Tai Seng Drive and 5 Science Park Drive are a strategic fit and will strengthen class portfolio. Singapore remains our core market and we are scaling up our presence with well located good quality assets that have long-term growth potential. The acquisitions are deeply creative and will contribute positively and provide us with steady long-term returns. **[00:13:19]** With that, I end my presentation. Thank you. Okay, thank you ki and we will have the ### Q&A - Question 1: DPU Accretion & 9 Tai Seng Drive Power Capacity (Mervin Song, J.P. Morgan) **[00:13:34] Mervin Song (Analyst, J.P. Morgan)**: first question from Marvin. Yeah, good morning and congrats, uh, William and team on the transaction in the long waited. Um, can I just touch on the creation numbers? Um, so I haven't had chance to calculate this, but if include the rental outlet from Tang, what would the overall, uh, creation be? The second question I have is what's the, uh, capacity for nine tying drive on the megawatt per capacity basis on the Shopee renewal? **[00:14:10] William Tay (CEO)**: Uh, any indications whether to extend and for how long and whether there's any cap access required? And then finally, what's the assumed boring cost? Thanks. Uh, moving, can you repeat your first question just now? You were turning up the volume. Yeah, sorry. I just wondering what would be the overall tion be if you include the rental uplift at 9 Tai Seng Drive? **[00:14:37]** Yeah, that 30% discount, Uh, okay, honestly, this there, the lease was signed, uh, in the past few years. Uh, you'll expire at different period, right? Uh, and each of the lease will have a different increase in terms of rent, uh, up uplift. Uh, this is based on average, uh, which average, uh, depending on when the leases will be upped, uh, it actually range the, the, all the renter up uplift ranges between, uh, low single digit to as high as 50 over percent, 60%. **[00:15:17]** So depending on where, uh, be uplifted, I think it's difficult to just give indication. Uh, unlike the, uh, 5 SPD (5 Science Park Drive), uh, 5 SPD (5 Science Park Drive) is also this related to your next question is, uh, how, how, how much more, um, leases, uh, on uh, shop by shop p Uh, they are 1.5 years to go. **[00:15:39]** Uh, they have two option term of three plus three, uh, so likely to be able to renew. Uh, and we are, we are able to guide that there is up uplift, uh, given the fact that it will be renewed at one goal. There is no predetermination or any downsizing, uh, terms, uh, in their lease. So it's either they, they renew everything, uh, based the exercise, the option, or if they want to regear to go take a longer lease, uh, five years or so, uh, we can then talk about it. **[00:16:10]** So based on that 15%, uh, there is a uplift in renter, uh, reversion, uh, that's why we calculated, uh, rent, uh, the accretion based on that higher number and based on the 30 million that is there will be, that is deferred, that will be paid upon the time when they sign the lease. Okay. So in essence, actually is a, if you like, is a structured deal, uh, in such a way that entry, uh, is based on the lower rate that was signed six years ago, uh, at our current rate. **[00:16:44]** Uh, so the, the year was 6.1% is based on the current rate. Uh, and with the renter reversion, uh, the incremental 30 million plus whatever renter up believe, uh, is easily close to 7% incremental, uh, uh, uh, yield. Uh, so we are able to get better accretion based on that. Uh, we are very confident that this will likely be the case because, uh, based on what we have seen in terms of signing rents, especially in Geneo, uh, I think you have followed me mentioned that, uh, the Geneo signing rents is much better than our underwriting three years ago. **[00:17:21]** Uh, so we are very confident that this is, uh, likely to be the case in terms of the renter uplift. And you also heard me mention that Shopee is renewing their lease in, uh, gala Galaxiss, uh, so they remain our top 10 tenant. Uh, so with the lease we are in a, in a, in a midst of, uh, finalizing the lease in gala, gala, uh, we understand that we will then move on to renew the lease negotiation and have indicated, uh, positively for this renewal. **[00:17:48]** Uh, there is no indication of them moving anywhere else. So we believe that this is positive for us in terms of renewal, uh, there was the last question. Oh yeah. Okay. Yeah. Two questions. Yeah. For that cost, we have assumed about 3%. Yeah. And then the megawatt for anti second drive, how, how big is it? Uh, I can't disclose that. **[00:18:17]** Uh, unfortunately, uh, it is, uh, uh, it's double digit. It's not small. Uh, but I can't disclose further, uh, the reason why we actually transacted now also because, uh, there was some a EI that we got additional power or rather, uh, CLD got additional power fitted out and it was last sign, uh, later sign. Uh, I think you see the announcement there is one that's coming in next month. **[00:18:41]** Uh, so we have finally waited for this asset to be a hundred percent occupied, uh, which is why this is, uh, done right now. And then the Shoppy building, is there any CapEx savings to be spent on, on the building given they've been there for quite a while? Uh, no. Uh, they made the building is is brand new. **[00:18:58]** It's, uh, young Building 2019 built both, actually built in 2019, complete in 2019. So, uh, there is, uh, no major CapEx required. Okay. Excellent. Congrats again. Thanks, Mavin. Okay, next we'll move on to Dale. Okay, thanks Andrea. Um, hi. Hi, William Tayip and, and team, congrats on the deal. Uh, just just a few questions from me. I, I start off with my first one on this, uh, you know, deferred consideration. **[00:19:26]** Just wanna understand a bit more on this. So, uh, am I right to say that you know, this, this 30 million will only be paid in November if you are able to renew the, the lease with Shopee? Uh, thanks deal. Uh, the, the 30 million is paid in about November. Uh, it's not a condition condition, uh, uh, precedent, so it will be paid, uh, it's structured to be deferred given the fact that there is a upside in renter. **[00:19:54]** Uh, so in terms of, uh, structuring the deal is either we can wait for the, uh, renter reversion to be done and transact next year, uh, when it's renewed or we do it right now. And, uh, the valuation now is about 260 million. Uh, we structure in such a way that, that we pay only 215 million today based on the current renter. **[00:20:16]** Uh, and the 30 million is, uh, is not a cp, you'll be paid out. Uh, and we have, uh, taken the position that, uh, Shopee is likely to renew, uh, even if Shopee do not renew. I mean, the 15% is based on what we think, uh, is reasonable given the fact this is a single lease, so entire space taken up, you know, it probably will just have a, a slight discount, uh, to the market comparables that we have signed on a normal lease. **[00:20:47]** Uh, so we believe that they will exercise and we have, uh, given they have given us indication that, uh, they will proceed to, uh, finalize this, uh, lease after they finalize Galaxiss. Okay. Okay. Got it. And, and again, just just to confirm, you were saying that for this shop piece lease, there is no option for them to actually downsize, so it's either they take a hundred percent or they give back a hundred percent? **[00:21:10]** Yeah, that's right. Okay. And, and there is no, uh, rental caps or, or, or, or, or flaw on this 15%? No. Yeah, it's a prevailing market. Okay. Okay. Got it. Got it. Okay. And, and maybe my next question is also with regards to the, um, you know, the, the, the fees, uh, for this, uh, 5 Science Park Drive. **[00:21:30]** Um, I mean, based on my calculation, it seems relatively high, uh, able to, to comment on, on on why the, the, the fees are essentially high for, for this, You're referring to transaction costs. The fees are same. Transaction cost is, uh, stem duty, I think the biggest, uh, which is 5%. Okay. Okay. So, so majority of this, these assets, These assets, this asset deal. **[00:21:53]** Mm. Okay. Okay, got it. Got it. Okay. And, and, uh, the last question I, I have with, uh, with regards to this, uh, Tyson, um, I'm assuming that this, this cost you are paying includes the, uh, the land premium top up already, right? Yes, that's right. Okay. So the lease will be renewed, uh, 30 years lease. Uh, the, this is, uh, all in cost including the land premium that will be, uh, top up. **[00:22:18]** Okay. Okay. Got it. That's clear. Okay. Uh, that's all for me for now. Thank you. Okay, thank you Dale. Thanks Tim. ### Q&A - Question 2: Shopee Long-Term Commitment at 5 Science Park Drive (Derek Chang, Morgan Stanley) **[00:22:28] Derek Chang (Analyst, Morgan Stanley)**: Then we'll move to Derek Chung from Morgan Stanley. Hi, morning William. Can you hear Me? Good morning. Hi. Uh, just wanted to ask a follow up on, uh, nine Tyson, uh, the, for the call DC IU the, the operator or is CLD continue to handle the operations **[00:22:53] William Tay (CEO)**: and, um, I guess how you, uh, looking to increase the park? Are you submitting a CFA or intending to, Uh, thanks Derek. Okay. The operator remains the same. Operator is CLD, uh, CLDC, uh, which is a, the, the data center team under CLI. Uh, the structure has, uh, been, uh, CLD was the asset owner and the operator is CLI, uh, data center. **[00:23:17]** Uh, so the transaction is that we take over the, uh, CLD, uh, as the owner and, uh, we remain, I retain the CLDC as the operator. Okay. With the first question. Okay. Yeah. Then how would the economics play out? I mean, would they, do they charge, uh, the rents to the underlying tenants and then you, um, they, they charge a margin or something and you take whatever's remaining? **[00:23:51]** Uh, okay. Uh, this is slightly different from, uh, other data center. Uh, uh, leasing, uh, now the, under the, there is a new, uh, if you hear budget, 2025, uh, co-location income, uh, is undergoing the assessment for, uh, tax transparency. Uh, so we have not gone down the route of having a master lease, uh, where there is a income, uh, retained by the operator. **[00:24:28]** Uh, so this is a straight, uh, transaction where the co-location incomes will be the renter, uh, for clear. Uh, and we pay a fee, uh, to CLDC, uh, to operate the facility. So it's almost like a normal, uh, property that we have acquired, uh, where the tax transparency is on the co-location, uh, uh, rent. Oh, I see. And, and what would the fee like to CC? **[00:25:00]** How much of that, how much of the, of the, you know, your top line will go to CBCs C payment One? Uh, yeah, about 1%, uh, 1.2%, if I'm not wrong. Yeah, lemme just check. I'll get back to you on that. Okay. Sounds, sounds quite marginal in that sense. Uh, and, and I guess, um, so everything else, uh, you'll be taking on, you know, all, all the, is it a triple net lease or is it, uh, will you be taking On, uh, no, they're not triple net. **[00:25:41]** They are, they are, uh, uh, various tenant in inside, uh, the, the tenants, uh, in e-commerce, uh, digital financial institutions. So it's a multi-tenanted co-location, uh, at d dc. Right. So, uh, what would the FPI margin then for this kind of structure? Uh, about 70, 80%, 70 80% margin margin. Okay. That's it. Okay. Uh, the, the, uh, it's the same, same fee, uh, sorry, uh, direct back to your question. **[00:26:13]** Uh, is the 3% of, uh, gross adjusted gross revenue, same as, uh, what would, uh, uh, a property manager would've charged, uh, the REIT as though is industrial building? Oh, Yeah. Hmm. Okay. Got it. Uh, I think you also have, uh, one, do you have one question on, uh, Yeah, on the, um, increase in IT capacity? Are you submitting the CFA? **[00:26:37]** Yeah, is, uh, there is, uh, space, uh, to, to get additional, uh, data room, a data hall. So we definitely want to be able to, uh, work on that, uh, either CFA or outside CFA, uh, similarly to what the CLD has done, uh, they have additional, they have actually maintain, uh, obtained additional capacity, uh, which is why it was, uh, TED out, uh, about last year, and they managed to get a tenant, and the last tenant that is coming in is actually, uh, next month. **[00:27:16]** Uh, so now it's a hundred percent based on the existing IT load. Uh, so there is additional space or empty space, uh, which we want to be able to do the same, uh, to get additional power and then do a EI and then sign the leases. How much, um, additional power capacity do you think you can increase? **[00:27:39]** Yeah, I can't tell, really can't tell. Uh, the additional power that they got for this, uh, latest a i, it was a single digit. Uh, so we believe maybe about the current level, uh, I don't think Digit increase, Low single digit, low single digit Or low single digit percentage increase or megawatt Low single digit megawatt. Oh, okay. And you are Entire is double digit. **[00:28:11]** They got additional low single digit in the last one, last 12 months. Okay. And you, uh, you're intend to submit a CFA with that same single digit increase to the authorities? Uh, yeah. I mean, the discussion is ongoing. Uh, it is either CFA, uh, we are hoping that it consider outside of CFA, uh, given the fact that this existing data center yeah, but I think, uh, it likely to be within the CFA, uh, but we do know exactly how the CFA will be run. **[00:28:42]** Uh, so we continue to talk to the authorities. Yeah, because the, there's a precedence in the additional capacity that was given, even though there was existing moratorium on place. Hmm. Yeah. Got it. Okay. Thank you. Uh, I'll just sit back the back of the queue. Thank you. You Thank you, Derek. Um, don't mind Derek Chung and Vin and, uh, put down the raise hand function so that I can see the rest. **[00:29:09]** Thank you. Okay. Next we'll go to Derek d Bs. Yes. Hi, good morning. Uh, William and team, can you hear me? Yes, yes. Okay. Okay. Uh, thanks William for bringing this deal to the market. I think it's really exciting. Uh, I just want a few follow up questions. So firstly, on this nine Tyson, right? Uh, I understand this under rent, but, uh, could you give us a bit more color? **[00:29:32]** How real do you think you can capture that 30%? Or from what I understand are hyperscalers all have rental caps, so if you can give a bit more color on, on this would be, would be good. It's my first question. Yeah. Hello. Hi. Hi, Derek. Uh, I would say the rental upside is, uh, very real. Uh, the leases were done, uh, between, uh, 2022 and 2023. **[00:30:07]** Uh, so, uh, as compared to the current market, if you're looking at the current market range is about, uh, US dollar 300 to 400. Uh, so the rental upside is, uh, very real and there is no, uh, cap on the existing leases. ### Q&A - Question 3: Acquisition Yields & Placement Equity Sizing (Dale Lai, DBS Bank) **[00:30:25] Dale Lai (Analyst, DBS Bank)**: It's all, uh, revert to market. So we are very confident about the rental reversion. It's, it's real. Okay. Well, this is excellent news. Um, maybe you can share what percentage of the leases will renew in the next two years? Is it a substantial part of it or No? Uh, the overall will is about, uh, four years. Mm-hmm. **[00:30:42]** Uh, in the next two years, uh, **[00:30:47] Khoo Li Sun (CFO)**: there isn't anything coming up actually. I see. Okay. Got it. Got it. Uh, okay, thanks for that. So my next question, uh, very quick one is I look at Science Park Drive, right? I noticed, um, we we managed to secure a good discounter to valuation. So I'm just wondering whether does the valuation reflect SHOPPY lease being extended? **[00:31:06]** Is there an option? Is there a possibility? For example, if they extend by 10 year, 10 years, there's a, the we we extend then the cap rate for this particular asset could compress. Is that a, a real scenario? It's a fair assumption. Uh, okay. Direct it's a fair assumption because what, what is in the list now is option of three plus three, uh, so valuable, just take that there is slightly to be a, a, a renewal based on three years. **[00:31:33]** So if they do, that's why I mentioned if they were to give us a re year of, uh, five years or longer, because the original, the first lease was signed for seven years, uh, it was signed since day one. Uh, so if they do give us a longer list, then the valuation will different from what it is today. **[00:31:48]** Got it. Got it. Got it. And maybe on my last question is, I don't, I don't see in your announcement, but just wondering whether is there any tax efficiencies at this point in time or this is likely to be a very tax efficient kind of acquisition? This excellent. Yes. The, the lease is, um, this, this acquisition is structured based on the tax transparency, um, that we're gonna get, assuming the target trust is, um, gonna be approved SubT trusts. **[00:32:21]** Then for the Shopee deal is a direct acquisition, asset acquisition, so it comes under cloud directly, so that will be test transparent as well. Okay. Okay. Got it. Got it. Okay. Uh, that's good news. All right. That's all for me. All right, thank you. Okay, thank you, Derek. Then we move to Rachel from a query. Hey. Hi. Morning, um, William and team, uh, congrats on this acquisition. **[00:32:46]** Uh, maybe, um, I think I missed the number. Do you have like the total acquisition if you include the rental, uh, reversion and also a deferred payment? Uh, so there's additional 0.2, um, over 1.5? 1.5, 1.6%? Yeah, 1.6%. 1.6%. Okay. Got it. Right. Um, and um, secondly, uh, I think for five Tyson, if you include the reversions and the deferred payment, what would be your, uh, yield initial NPIU? No, it's 5 7 7 9. **[00:33:35]** Tyson includes the renter reversion, uh, Sorry, the 5 cents part drive. Oh five science five. Okay. Include the renter reversion. That u would be about 6.6 0.25. 6.3. 6.5. Yeah. Okay. 6.25. Okay. Got it. Uh, and um, the next question is, uh, I think your nine Tyson has this 10%, um, co-location that's coming in on the 20th June. **[00:34:02]** Just wondering what kind of rental are they paying versus your existing average rental in your portfolio? Just to give us a sense, Hello. Uh, happy to say that, uh, this last agreement that's been signed is, uh, at a rental of, uh, close to 3 70, 3 70. Uh, and, um, how is that compared with the existing average rental of the existing lease? **[00:34:37]** Uh, the existing, the rest of the leases are very low, as I mentioned. Uh, Iran, even the last lease, uh, against the current market, uh, is a single digit, uh, uh, rental reversion, uh, I mean uplift to what the market is, uh, to as high as almost, uh, 60 50, 60% on the lease that was signed very much earlier. **[00:35:03]** Uh, so this is a very, even this lease was done last year, uh, which already, already reflected there is under rented compared to what it is today, uh, when the vacancy has like to 2% in the market. Okay. Got it. Um, and um, is there a timeline on the potential additional power that you will get? Uh, no timeline, uh, can't guarantee that as I, I think, uh, just now, uh, Dar also asked, uh, we will try, definitely, we'll try, because while we have seen success there under moratorium, uh, there was additional capacity that was given, uh, to the data center. **[00:35:50]** Uh, so we want to be able to work on that. Uh, is, to be honest, it won't, I don't think it will be only, um, a few months, uh, kind of effort. Uh, but definitely we want to be able work on that even as we get the, obtain the higher power. Uh, we also need time to fit out the data hall, uh, and find a tenant. **[00:36:12]** Uh, so in timeline wise, uh, that also took, um, just the, and finding the tenant, uh, took, uh, CLD about almost close to a year, and, uh, that is excluding all the time needed to get additional power. Okay. Got it. Yeah, so it'll be likely more than two year, um, one to two years at total processor, roughly? Yeah. **[00:36:35]** I don't know when it will be, uh, but, uh, yeah, based on existing precedents, yes, that's about a timeline. Uh, okay. So we would definitely want to be able to, to see where we can, because, uh, if the CFA were to happen this year, uh, then, then it, we will try see whether we can go under CFA, if not, it's outside of CFA. **[00:37:00]** Okay, got it. Uh, just one last thing. I think in terms of gearing, uh, post the EFI and everything, what, what gearing levels would you expect? About 38.3. Yeah. Okay. Ken, thanks so much. Hey, congrats on this deal again. Yeah, Thank you. Thanks. Okay, thank you Rachel. Then we move on to Donald. Hi, can you hear me? Yes. **[00:37:27]** Hi. Uh, couple questions. Maybe start with the, uh, first, um, in terms of the lease structure, uh, William, you saying that, uh, the MPI, uh, margin is between 70 to 80%, uh, is there any power pass through kind of, uh, structure for this asset? Uh, yes. All the tenant, all the power pass through, All the power has passed through. **[00:37:55]** Okay. Yes. Uh, and is there any step up even that there is no, um, uh, material lease renewals in the next two years? Is there a step up? Right? Yes. Uh, between two to three and a half percent, Two to 3.5%. Okay. And, and is there any, uh, color that you can give in terms of breakdown? You know, how many percent of the, the customers are in hyperscale or wholesale and from what industry, et cetera? **[00:38:21]** Uh, the four in the bucket of, uh, social media, uh, e-commerce, uh, fi, so no hyperscaler. Okay. Uh, or yeah, or any cloud players, And there is no real concentration kind of recently or a single customer, No concentration. Yeah. Okay. Uh, that is fine. ### Q&A - Question 4: Debt Headroom Post-Acquisition (Rachel Tan, Macquarie) **[00:38:49] Rachel Tan (Analyst, Macquarie)**: And, and the five signs park, just a quick question on the, um, deferred uh, payment, 30 million, uh, in a event, in a very unlikely event, if Shoppe doesn't renew, uh, you will still have to pay the 30 million, do you? Yes. Uh, the 30 million will be paid regardless of whether shoppe, uh, renew. Uh, but we are very, very conservative in the way we have, uh, assumed the, uh, renter up leave and the EO creation given with the a, a, a payment of 30 million. **[00:39:19] Khoo Li Sun (CFO)**: Uh, if they do not renew, uh, then we believe that the, the market has shown, and especially the Geneor, uh, leases have shown that we actually can lease out even much more higher. Hmm. And the underwriting is 15% reversion? Yes, that's right. Okay. Sorry, I jump around. One last question. You switch back to nine, uh, uh, Tyson, uh, couple years old already at this asset. **[00:39:45]** First still fairly young, but what is the historical occupancy rate? Is it has always been a hundred percent or is it just recently? A hundred percent? Uh, it's always been a hundred percent based on available power. Okay. So the additional power that they got, uh, a year ago, uh, prior to that, it was a hundred percent, uh, then they got additional power, uh, which then, uh, uh, we waited for it to be figured out before we actually activated the transaction. **[00:40:15]** Okay. Okay. That's fine. So In essence, actually while, while the a EI is ongoing, uh, I think transactions can be done, Don, uh, given the fact that the, there will be higher value, and if you were to acquire at a point in time, we will, we, we will, we'll not be able to rec recognize the income, uh, and, uh, so we have to wait for, I mean, it was always a hundred percent, and now after the ai, it continued to be a hundred percent percent. **[00:40:44]** Uh, so actually that shows the strength of the market, uh, if there's available capacity. Actually, it's been listed up quite fast. Any more, any more things drawing and any more, um, assets from CLD in the data center space that, uh, in the letter you can look looking at? Uh, no. They have only one in Singapore, But, uh, is, but sorry, really last question. **[00:41:12]** Uh, is there a target for data center exposure for you, uh, in the next three to five years? Okay. Uh, uh, good question. I think there is still opportunity. Uh, I think you have seen us being able to work with the first CFA one of the successful applicant. Uh, we continue to work with the operators, uh, who has aspiration for the second CFA. **[00:41:38]** Uh, so there are opportunity for us to expand, uh, as you have, uh, probably also seen us, uh, being active overseas, uh, Europe continue to be a location that we continue to have interest to expand our data center presence. Uh, there's also a, uh, data center to be redeveloped, uh, in London. Uh, so there's another one that will increase our exposure to data center. **[00:42:05]** Okay. That's, thank you. Thanks Donna. Okay, thank you. Um, we have, uh, Dale again, here's another question. Yep. Thanks. Thanks Andrea. Uh, William, just, just a few quick follow ups. I think with regards to the EGM. Just wanted to check, um, are the two, uh, acquisitions, uh, you know, you, you seek separate, uh, uh, approvals, uh, and are they contingent of 1, 1 1 another? **[00:42:33]** Uh, it's actually, uh, one deal, uh, because it's a portfolio deal, uh, same seller, so you'll be under one, uh, resolution. Okay. Okay. And, and with regards to the private placement, not sure if, if I missed this in the announcement, um, is there an option for, for upsizing and if so, what what is the, the, the upsize option? **[00:42:56]** Uh, I think we will just, uh, to be honest, we will just go for 500 because there is actually quite, uh, uh, there's additional the, we have raised to pat pay down debt, bring down leverage so that we can continue to, uh, use the headroom if we want to continue acquiring in the second half. So, so we should just assume it would be 500? No, We just assume it's 500. Yes. **[00:43:22]** Okay. Okay, Ken, thank you. Thank you so much. Okay. Does anyone else have any questions? Okay, Derek, you may ask your question. Derek Chung? Yeah, hi again. Um, just, just wondering, out of, um, curiosity, if, um, let's say shop, worst case, worst case scenario, Shopee, uh, doesn't renew, um, and you need to backfill, how long do you think that would, that would take from backfill back a hundred percent or close to it? **[00:43:57]** Uh, if they given our track record right now, uh, and uh, honestly, given the fact that it's one and a half years, uh, later, uh, we will start marketing, uh, once, uh, we get any indication anyway, they're, they were supposed to give us early notice about a year. Uh, so it give us time to be able to back feel. **[00:44:17]** Uh, i, I think it's a Geneor cluster is very attractive right now. Uh, while we have almost close to full occupancy, uh, in, uh, uh, the cluster one, uh, block one, one A and one B, uh, there's continued strong interest. Uh, I think you probably heard me mention when we've during, uh, uh, results is that, uh, those who have actually missed up on coming into G they have actually missed up. **[00:44:47]** Uh, so if it does make available space in one and a half years time, I think there'll be strong interest. Uh, so I can't exactly give a, a given the strong interest. I think it's, I mean, typically a empty building, if it's basically an empty, I would typical, I would take that, you know, about two years, two and a half years to be able to fill it up if you are to slowly increase the, the occupancy. **[00:45:11]** Uh, but given where the, the, the interest is for GI think we'll take shorter than that. Okay. Alright. Thank you. And, uh, I guess for, for, um, that line, um, facing on the increase in potential increase in in IT capacity, um, you think that it's most likely or most likely come through a, a cfa, but we don't have any timeline yet, right? On the second Cfa? Yeah, there's no timeline. **[00:45:42]** Um, I think all of us are waiting for it to, to happen, uh, since there is indication that you'll be this year. So we hope that you will be this year. Right. But would it, um, would it be more likely that you can do it through, you know, non CFA, non CFA route actually? 'cause it seems like that's what, you know, like sort Edge Strong has been, edge Strong has done. **[00:46:01]** Yeah, I think the non CFA route has to yes, uh, it is possible, which is what we have, uh, I mean what CLD has done, uh, in this additional capacity that built up in the last, uh, one year. Uh, so the other, the other, uh, uh, uh, helpful point, uh, will be a demand. If we can get a demand, uh, to come in, uh, hopefully there also demand is end user, end user, then that'll be helpful for us to hopefully can get, uh, uh, outside of CFA. **[00:46:35]** Okay, got it. All right. But this regulation and policy is very uncertain. So, uh, there is existing precedents. We hope to be right on that. Uh, if not, then if the CFA opened, I think we also will go around the CFA route and, um, try all routes. Okay. Got it. Okay. Thank you. Then we have, uh, tan on Goldman Sachs. **[00:46:59]** Morning. Morning, William. Um, just one question actually. ### Q&A - Question 5: Tai Seng Data Centre Competitive Dynamics (Vijay Natarajan, RHB) **[00:47:07] Vijay Natarajan (Analyst, RHB)**: Uh, can you talk a bit more about beyond this transaction, what acquisitions, AI or further ais or diverse for the rest of the, Um, okay. Beyond this transaction? Uh, I think, uh, we will continue to look at, uh, redevelopment first. Uh, the data center in London is one that we definitely want to, uh, be able to close, uh, where we, I think we are, I mentioned that we are working with, uh, existing, **[00:47:36] William Tay (CEO)**: uh, prospect right now. So hopefully that we can close and then start the, uh, development. Uh, we are still active, uh, looking for, uh, acquisition opportunities, um, mainly here in Singapore as well as Europe. Uh, us, uh, US will probably be one that we will monitor the market, uh, uh, for now. Uh, so these are the few things that we will do, um, uh, divestment, uh, we also working in divestment, uh, early in the year. **[00:48:09]** We mentioned that we probably can look towards about, say about 300 or more in terms of divestment. So this will probably be what we'll be working on for next, uh, half year. So is it fair to say even if the London be development comes true, you probably don't need to do another fundraising this year? Yeah, no, no. Yeah, no need to. **[00:48:31]** Okay. Got it. Thank you. Thanks Shane. Okay, Then we will move on to, uh, Jonathan. Yeah. Uh, good morning and Congress on the deal. I have, uh, two questions relating to, uh, DPUA Christian, which are stated as 1.3599999999999999%, and that doesn't include the 30, 30 million, uh, deferred payment. So, uh, if you include the 30 million deferred payment, uh, shouldn't be the accretion be lower, and, and what would the number be? **[00:49:13]** Uh, secondly, earlier you was mentioned accretion improving to, uh, 1.6%. Could you just, uh, remind us what are the assumption, uh, uh, needed to get to that? Uh, 1.6% Christian, thank you. Uh, thanks, Jonathan. So if you were to include a 30 million upfront right now, uh, it will probably be 1.11 slight decrease, 1.1 plus, uh, and if the assumption for the higher accretion, uh, is based on a min, uh, a 15% increase in the renter rev, uh, renter reversion. **[00:49:57]** Okay. So, so 1.6 is, uh, assuming 15% a acquisition, uh, for the, uh, for For the additional 30 million? Yes. Okay. Okay. Okay. Thank you. In effect, the, uh, zero point, uh, the, the, the last column, uh, Christian, uh, with is a pro forma, uh, but assume that 30 million is paid out, uh, with a renter reversion. **[00:50:29]** So this will, uh, this will take into account the new lease, uh, that will be signed under shopee. Okay. So it's about year two. Like year two in effect, like if you say, but this is calculated right now based on current pro forma. Uh, but the lease will be year two, one and a half year later, year 2.5. **[00:50:49]** Okay. So then for, uh, five science pack drive, the total equation will be 0.14 plus 0.25, which will be something like 0.4, Uh, no, 0.25 is all in All in. Okay. Thank you very much. Okay. Then we move back to Marvin. Yeah, just wanna check the MBI yield for, uh, Shopee hq. So 6.1% is yields based if you exclude the 30 mil deferred payment, right? **[00:51:30]** Sorry? Yes, yes. Yeah. So if you include deferred payment, It's based on current renter and Yeah, I just went through 6.1 based on, uh, excluding deferred payment. Including deferred payment, it's, uh, 5.56. 6.3. Yeah. Uh, yeah. Include deferred payment, it'll be, it'll drop to 5.35, am I correct? And then it goes back up to 6.2 thereabouts after the 15%. **[00:51:59]** Uh, but 30 million is not paid out now. Okay. Yeah. It's paid out, uh, one and a half years later. Yeah, sure. So if, sorry, if, what would the MPI yield be if after the 15% rent out? I'm sure there's some six point. 6.3. Okay. Um, in terms of the tenant concentration risk for core load, is there some stats you can give? **[00:52:28]** Give us like top, top five, is it 50% of the property, or the largest tenant is like 15% of all near those stats roughly? Um, no concentration. Yeah. The, the, the leases are always spread out. Okay. So the largest tenant, how big would it be? Uh, largest tenant is about the single lease here, about 30%. 30%. Yeah. The rest is all quite spread out. Yeah, I missed it. You said there was social media fis and then there's another category. Well, was Digital e-commerce. E-commerce. **[00:53:05]** E-commerce, and no cloud operators, right? No, no cloud operators. Yeah. Okay. Excellent. Congrats again. Okay. I don't think there are any more questions. Um, Jonathan, do you have another question or do you just forgot to off turn it off? Uh, I'm good. No, no further question. Okay. Thank you. Thank you. Anyone else? Last call? Okay. Going once. Going twice and gone. Okay. **[00:53:39]** Thank you everyone for your time and for dialing in this last minute, maybe any last final words from management? Thank you. Thank for, thank you for dialing this morning. Uh, I think we have, uh, waited for this acquisition. Uh, uh, just ma mentioned that this, uh, long waited. I think this is, uh, quite good for us. Uh, you look at the numbers, uh, it is actually a creative, uh, on a standalone basis. **[00:54:08]** Uh, and, uh, we are able to unlock lease with even a, a, a positively structured deal for shopee, uh, where we pay what is the yield, uh, base, uh, pay pay based on what is, uh, the existing renter and defer whatever we can, uh, to subsequent years, uh, so that we can actually be in control of the, uh, uh, lease renewal. **[00:54:33]** Uh, so this is quite a exciting, uh, transaction and, uh, especially also for the izing, uh, many a times, uh, analyst investor ask us what are the assets that's under sponsors that we can unlock is ma mostly in the business part? Uh, sometime we forgotten that there is a data center. Uh, so this is one data center that, uh, it has been, uh, work in progress and now that is, uh, uh, with all the additional power that comes in, uh, really start at very high renter, uh, we are able to unlock this. **[00:55:07]** Uh, so this is actually what we feel that is, is, uh, is a good addition, uh, to our Singapore portfolio. And this, uh, especially Shopee actually further strengthens our Geneor cluster. Uh, the Geneor cluster one has actually, what we have 34%. Uh, so this is directly connected to MRT station with all the new offerings. So this is actually a good addition for us. **[00:55:30]** Uh, and the two assets, I think they are probably the best in class right now. Uh, and we are able to, uh, bring this to market. Thank you. Thank you so much. Okay. Thank you. We'll end this call.