CapitaLand Ascendas REIT (CLAR) has announced its first logistics development venture in the United Kingdom, with a total investment of $350.1 million (£203.5 million) for four new properties in the East Midlands.

The Singapore-based REIT will acquire two freehold land plots at Manton Wood in Nottinghamshire and Towcester in Northamptonshire, developing one and three logistics properties respectively. The developments will add approximately 135,600 square metres of floor space across the sites. 

The East Midlands represents a strategic location for logistics operations, accounting for 30% of UK logistics take-up in 2024. The region benefits from excellent connectivity through major motorways including the M1, A1, and A5, whilst East Midlands Airport serves as the UK's second-largest cargo hub for companies such as DHL, UPS, and FedEx.

Manton Wood's proximity to the A1 (2km) and M1 (16km) enables access to key consumer markets across the North East, North West, Midlands, and Central London within 4.5 hours. Towcester sits within the logistics "Golden Triangle" of the Midlands, with over 83% of the UK population reachable within a 4.5-hour drive.

The properties will target BREEAM "Excellent" certifications and feature sustainable elements including roof-mounted solar panels, natural lighting, and electric vehicle charging points. Building specifications include 15-18 metre eaves and enhanced floor loading capacity to meet modern logistics requirements.

William Tay, Chief Executive Officer, described the investment as "a significant step forward" in scaling CLAR's UK logistics presence, capitalising on structural drivers including e-commerce growth and supply chain reconfiguration.

Image credit: CapitaLand Ascendas REIT - Artist impression of Manton Wood property