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GIC-ESR Cayman acquisition of Blackstone assets to benefit industrial S-REITs: DBS

Atiqah Mokhtar
Atiqah Mokhtar4/21/2021 3:4 PM GMT+08  • 2 min read
GIC-ESR Cayman acquisition of Blackstone assets to benefit industrial S-REITs: DBS
MLT, FLCT and ARA LOGOS will be "the most leveraged to benefit" from the transaction.
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The joint acquisition by GIC and ESR Cayman of Blackstone Group’s industrial and logistics assets in Australia will benefit industrial Singapore REITs (S-REITs), says DBS Group Research analyst Derek Tan.

GIC and ESR Cayman are acquiring a portfolio of 45 assets for A$3.8 billion ($3.92 billion) or 10% above valuation, which Tan says sets a landmark pricing for the industry. The price implies a yield of around 4%.

Pursuant to the transaction, Tan believes year-end valuation exercises should see increased values for similar Australian assets. This, he says, should benefit select industrial S-REITs, particularly those which have logistics-focused exposure in Australia.

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