Ascendas REIT enlarges UK portfolio with $459 mil acquisition of logistics properties

Ascendas REIT enlarges UK portfolio with $459 mil acquisition of logistics properties

By: 
PC Lee
29/09/18, 05:00 pm

SINGAPORE (Sept 29): Ascendas REIT is scaling up its portfolio in the UK with the proposed acquisition of a portfolio of 26 logistics properties for £257.5 million ($459.2 million).

The properties are well-located in key logistics locations with about 70% of the portfolio’s gross internal area situated within the West Midlands, an important logistics hub located at the centre of UK’s motorway network.

In connection with the acquisition, Ascendas REIT (Europe), a direct wholly-owned entity of HSBC Institutional Trust Services (Singapore), as trustee of Ascendas REIT, on Friday entered into a sale and purchase agreement with Griffen Group UK Holding to acquire all the issued share capital of Griffin UK Logistics Fund and its nine wholly-owned subsidiaries which own the target portfolio.

Ascendas REIT is expected to incur an estimated transaction cost of about $12.12 million. This includes the acquisition fee of $4.58 million payable to the manager and professional fees, insurance premiums, and other fees and expenses of $7.54 million.

The target portfolio is 100% occupied. Its long WALE of 9.1 years will extend Ascendas Reit’s portfolio WALE of 4.3 years to 4.5 years.

The proposed acquisition is expected to generate a net property income yield of 5.39% post-transaction costs in the first year. Annualised pro forma financial effect of the proposed acquisition on FY17/18 distribution per unit would be an improvement of 0.0223 cents.

Completion is expected to take place in the fourth quarter of 2018. Including the proposed acquisition, Ascendas REIT will own a total of 98 properties in Singapore, 35 properties in Australia and 38 properties in the UK.

The UK properties will make up 8% of Ascendas Reit’s total portfolio asset value, up from 4%.

Year to date, units in Ascendas REIT are down 4% to $2.64.

 

Next stop: The interchange of public and private good

SINGAPORE (May 20): Two-minute intervals between trains. Fewer breakdowns. Clean, new buses running at a higher frequency. Bright LED screens displaying details of stops on both buses and trains. To many commuters who are enjoying these benefits, the meltdown of Singapore’s transport system in December 2011, and again in July 2015, is a distant memory. Certainly, services have improved significantly. There are new trains and buses, while existing ones have been spiffed up. There has been an overhaul of the older rail systems, presumably including fixing the grips for the electricity rail ....
Read More >>
Moving from compliance to accountability

While the collection, use and disclosure of data is regulated by the Personal Data Protection Act, b

Failed Innopac deal portends mining magnate Gutnick’s woes in Australia

SINGAPORE (May 20): The Australian Securities and Investments Commission (ASIC) is seeking judicial permission to wind down mining company Merlin Diamonds. The regulator is also probing into whether its chairman Joseph Gutnick failed in his duties. Gutnick, who is known as “Diamond Joe”, is under investigation for a A$13 million ($12.3 million) loan made by Merlin to AXIS Consultants, a private company linked to him. Merlin shares have been suspended from trading since October 2018. ASIC is seeking an order to appoint Deloitte to liquidate Merlin, owner of the Merlin Diamond Mine Pro....
Read More >>