ESR-Logos Reit proposes acquisition of logistics asset in Tokyo for S$183.5m

ESR-LOGOS Reit (E-LOG) is planning to acquire a 5-storey modern logistics asset in Tokyo for 17.8 billion yen or S$183.5 million (inclusive of rental support), which is expected to be distribution per unit (DPU) accretive to unitholders.

The transaction is the first direct asset acquisition, post the merger with ARA Logos Logistics Trust, from sponsor ESR Group’s pipeline of logistics assets. Including fees and expenses, the total acquisition cost is about S$187 million.

Located in Sakura City, Chiba Prefecture, the freehold asset has a total land area of 41,658 square metres (sq m), net lettable area of 81,507 sq m and a weighted average lease expiry (WALE) of 2.9 years, as at Jun 30, 2022. ESR Sakura DC will be acquired at a net property income yield of 4.35 per cent.