A-Reit to acquire logistics portfolio in Australia for A$1.013b
ASCENDAS Real Estate Investment Trust (A-Reit) is looking to make its maiden acquisition of 26 logistics properties in Australia for A$1.013 billion from GIC and Frasers Property Australia.
Tan Ser Ping, executive director and CEO of the Ascendas Fund Management, the manager of A-Reit, said: "The proposed acquisition, comprising 26 prime logistics properties located on freehold land in the key cities of Sydney, Melbourne and Brisbane, will establish A-Reit as the eighth largest industrial landlord in Australia. In addition, this will further enhance our customer base with high calibre end-users (such as Wesfarmers, Mondelez, Pacific Brands, API, Nestlé, Officemax) and multinational third-party logistics tenants (such as CEVA, DB Schenker, and Linfox). It also diversifies A-Reit's portfolio geographically. The portfolio has 24 tenants with 30 triple net leases."
The proposed acquisition is expected to generate a net property income yield of about 6.4 per cent pre-transaction costs in the first year (6 per cent post-transaction costs). The target portfolio has a committed weighted average lease expiry (WALE) of 6.1 years as at June 30. The proposed acquisition is expected to be completed in the fourth quarter of 2015.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Telegram messaging service to allow Tether stablecoin payments
Hong Kong regulator to probe PwC auditing role over Evergrande
US: S&P, Dow open flat as Middle East jitters ease, Netflix weighs on Nasdaq
DBS puts 46 retail units, HDB shops on market for S$210 million
China to facilitate Hong Kong IPOs and expand Stock Connect
Global equity funds see surge in outflows as rate cut hopes fade