A-Reit invests in Australian logistics property

Singapore-listed Ascendas Real Estate Investment Trust (A-Reit) said it has reached a deal to acquire 26 logistics properties in Australia for A$1.013 billion (ca. €646 million).

Tan Ser Ping, Executive Director and CEO of the Ascendas Fund Management, said: “The proposed acquisition, comprising 26 prime logistics properties located on freehold land in the key cities of Sydney, Melbourne and Brisbane, will establish A-Reit as the eighth largest industrial landlord in Australia.

“In addition, this will further enhance our customer base with high calibre end-users such as Wesfarmers, Mondelez, Pacific Brands, API, Nestlé, Officemax and multinational third-party logistics tenants such as CEVA, DB Schenker, and Linfox. It also diversifies A-Reit’s portfolio geographically. The portfolio has 24 tenants with 30 triple net leases.”

A-Reit has established a wholly-owned managed investment trust by the name of Ascendas REIT Australia (MIT) for acquiring and holding these properties. MIT in turn will hold the trust by the name of Ascendas Logistics Trust, and the latter will hold the properties, the company said.

The Singapore real estate trust will fund the deal with a combination of A$600 million Australian onshore loans and by the issuance of perpetual securities by A-Reit.

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