Ascendas REIT buys Sydney logistics property for $21.1m

The consideration is 19.8% lower than the site’s market valuation of $28.24m.

Ascendas REIT (A-REIT) has bought a new logistics property to be developed on Lot 7, Kiora Crescent, Yennora, in Sydney, Australia, a press release announced. The total consideration for the deal hit $21.1m (A$23.5m).

The property will be developed by Larapinta Project. Meanwhile, Perpetual Corporate Trust, as trustee of A-REIT’s indirectly wholly-owned Ascendas Longbeach Trust No. 10, has entered into agreements with the Larapinta Project for the purchase of the freehold land. The acquisition of the land has been completed, and the development of the logistics property is expected to finish in Q2 2021.

A-REIT added that the purchase consideration comprises the land and development cost, which is 19.8% lower than the “as if complete” market valuation of the property at $28.24m (A$29.3m) as at 30 June.

They are also expected to incur an estimated total transaction cost of $1.29m (A$1.43m), which includes stamp duty, professional advisory fees, and acquisition fees payable to A-REIT’s manager in cash.

Net property income yield for the first year includes approximately 6.2% and 5.8% pre-transaction costs and post-transaction costs, respectively. The acquisition is expected to be accretive to the REIT’s distribution per unit.

The acquisition will be funded through internal resources and/or existing debt facilities. The site spans 26,632 sqm with an approximate lettable floor area of 13,100 sqm.