Ascendas REIT eyes 12 properties in UK

It will be the firm’s debut in the UK logistics market.

Ascendas Real Estate Investment Trust (REIT) will expand its footprint in Europe through its plan to acquire 12 logistics properties in UK, an announcement revealed.

Said properties are eyed from two third-party vendors Oxenwood Catalina Midco and Oxenwood Catalina II Midco Limited for £207.27m ($373.2m). The completion of the acquisition is targeted by Q3 2018.

After finishing the acquisition deals, Ascendas REIT’s UK arm and Ascendas-Singbridge will allot certain management and other related services of the said properties to Ascendas REIT.

Ascendas REIT said that the 12 properties are strategically located in established distribution centres with good connections to core urban areas, making it well-poised for the growing demand for supply chain and logistics services.

“The portfolio has a long weighted average lease expiry (WALE) of 14.6 years and is largely comprised of freehold land,” Ascendas Funds Management executive director and CEO William Tay noted. “These are appealing attributes that will strengthen our existing portfolio.”

The proposed acquisitions will be Ascendas REIT’s debut to the UK logistics market.