Ascendas REIT is acquiring A$1 billion worth of logistics properties in Australia.
The portfolio comprises 26 assets,with a gross floor area of 630,946 sqm, and will be purchased from the real estate arm of the Government of Singapore Investment Corporation (GIC) and Frasers Property Australia, through their subsidiaries and affiliates.
The assets are located on freehold land in Sydney, Melbourne and Brisbane, and will establish A-REIT as the eighth largest industrial landlord in Australia, says CEO of A-REIT Tan Ser Ping.
It will also boost its customer base with high calibre end-users such as Wesfarmers, Mondelēz, Nestlé, and Officemax, as well as multi-national third party tenants like CEVA, DB Schenker and Linfox.
The acquisition will incur estimated transaction costs of A$64.8 million, which includes stamp duty, professional advisory fees and the acquisition fee payable to Ascendas Funds Management, A-REIT's manager.
The acquisition fee is about 1% of the purchase consideration, or A$10.1 million. It will be paid in the form of units in A-REIT
The acquisition is expected to generate a net property income yield of 6.4% pre-transaction costs in the first year, and 6% post-transaction costs.
The portfolio has a committed weight average lease expiry of 6.1 years as at end June.
A-REIT expects to complete the acquisition in the fourth quarter of this year. A-REIT intends to fund the acquisition with Australian onshore loans of A$600 million and the issuance of perpetual securities with a distribution per unit of 3% to 3.5%.
Ascendas REIT is up 1.3% at $2.27 on Friday.
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The portfolio comprises 26 assets,with a gross floor area of 630,946 sqm, and will be purchased from the real estate arm of the Government of Singapore Investment Corporation (GIC) and Frasers Property Australia, through their subsidiaries and affiliates.
The assets are located on freehold land in Sydney, Melbourne and Brisbane, and will establish A-REIT as the eighth largest industrial landlord in Australia, says CEO of A-REIT Tan Ser Ping.
It will also boost its customer base with high calibre end-users such as Wesfarmers, Mondelēz, Nestlé, and Officemax, as well as multi-national third party tenants like CEVA, DB Schenker and Linfox.
The acquisition will incur estimated transaction costs of A$64.8 million, which includes stamp duty, professional advisory fees and the acquisition fee payable to Ascendas Funds Management, A-REIT's manager.
The acquisition fee is about 1% of the purchase consideration, or A$10.1 million. It will be paid in the form of units in A-REIT
The acquisition is expected to generate a net property income yield of 6.4% pre-transaction costs in the first year, and 6% post-transaction costs.
The portfolio has a committed weight average lease expiry of 6.1 years as at end June.
A-REIT expects to complete the acquisition in the fourth quarter of this year. A-REIT intends to fund the acquisition with Australian onshore loans of A$600 million and the issuance of perpetual securities with a distribution per unit of 3% to 3.5%.
Ascendas REIT is up 1.3% at $2.27 on Friday.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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