Aims Apac Reit to acquire Perth freehold industrial property for US$29.6 million

[SINGAPORE] Aims Apac Reit (AA Reit) is acquiring a nearly 9.2 hectare freehold industrial landholding in Perth, Western Australia, for A$42.7 million (US$29.6 million).

The property in the Hazelmere precinct comprises two adjoining freehold land plots. The proposed acquisition was announced by the real estate investment trust’s (Reit) manager in a bourse filing on Thursday (Jul 9).

The purchase consideration matches the property’s independent valuation of A$42.7 million, which was conducted by Colliers International Holdings (Australia), as at Feb 27. The total acquisition outlay is estimated at A$44.3 million, which comprises the purchase price, acquisition fees and professional expenses.

The property is fully leased to Swan Materials, a subsidiary backed by global building materials leader CRH and Australian building materials supplier Barro Group. The asset is held under a 10-year triple net lease that commenced on Oct 1, 2025. The master lease comes with a fixed annual rental escalation of 3.25 per cent and includes two 10-year renewal options.

Based on the property’s year-one net property income, the transaction is expected to generate an initial yield of 5.3 per cent.

Assuming the deal is fully funded by debt, the acquisition is expected to be distribution per unit (DPU) accretive. The pro forma DPU for the financial year ended Mar 31 would increase by 0.3 per cent, from S$0.0985 to S$0.09877. With the master lease in place, the manager expects an average DPU accretion of about 0.6 per cent over 10 years.

Russell Ng, CEO the manager, said that the site offers “significant long-term redevelopment potential”. This includes potential conversion into modern warehouses or data centres, supported by its large scale, strategic location and proximity to the 550 megavolt ampere Guildford Terminal Substation.

Following the acquisition, AA Reit’s gross rental income contribution from Australia will increase from 23.5 to 24.4 per cent. The portfolio’s weighted average lease expiry will also lengthen slightly from four to 4.1 years.

The transaction is expected to be completed in the second quarter of the Reit’s 2027 financial year.

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Units of AA Reit rose 0.6 per cent to close S$0.01 higher at S$1.64 on Wednesday.