Ascendas Reit to buy UK logistics properties for $459m

They have a gross internal area of 266,184 sq m and a full occupancy rate.

Ascendas Real Estate Investment Trust (Ascendas Reit) will expand its foothold in the UK as it will acquire 26 logistics properties in the UK for $459.2m (£257.5m), an announcement revealed.

The acquisition follows the firm’s sale and purchase agreement to buy all the issued share capital of Griffin UK Logistics Fund and its nine wholly-owned subsidiaries which own the logistics portfolio.

With a total gross internal area of 266,184 sq m, the logistics properties are located in established industrial areas within the West Midlands, North West England, South East England and Yorkshire and the Humber. All properties have a full occupancy rate and a long WALE of 9.1 years which will extend Ascendas Reit’s portfolio WALE of 4.3 years to 4.5 years.

They also enjoy accessibility to the major motorways and junctions such as the M5, M6 and M40, giving it connectivity to a large catchment of UK’s population.

“The additional 26 logistics properties will increase our presence in the West Midlands, which is an important logistics hub supported by large population nodes such as Birmingham, Coventry and Leicester,” Ascendas Funds Management CEO and executive director William Tay said.

The deal is eyed for completion by Q4 2018.