Ascendas REIT to buy Australia business park for $33.9m

It has a gross lettable area of 8,216 sq m.

Ascendas Real Estate Investment Trust eyes to acquire Cargo Business Park in Brisbane for A$33.5m ($33.9m), an announcement revealed.

Located near the Brisbane Airport and the Central Business District (CBD), the logistics property has one four-storey and two three-storey buildings situated in a freehold land. It has a gross lettable area of 8,216 sq m with a warehouse/showroom space located on the ground floor and office spaces on the upper floors.

In addition, Cargo Business Park is situated in the established industrial precinct of Eagle Farm. It is also accessible to major roads including the old and new Gateway Motorways which links to the Pacific Motorway to the south and the Bruce Highway to the north.

According to the announcement, the vendor will provide a 12-month rental guarantee for the vacant spaces for their tenants including Commonwealth of Australia (Bureau of Meteorology), Asics, and Nike. Cargo Business Park has a healthy retention rate of approximately 78%.

“Its uniqueness allows us to cater to customers who require a combination of warehousing, showroom and office space in the same building,” Ascendas Funds Management executive director and CEO William Tay commented.

The property’s leases have annual rental escalations of between 3% and 4%, with weighted average lease expiry of 2.6 years as of June.

The deal will seal the firm’s Australian portfolio to 34 properties.