ESR-LOGOS nets A$65.5m from Australian property sale

The REIT sold the property at a 7.4% premium.

ESR-LOGOS REIT, through its indirectly wholly-owned entity, Altona Trust, divested its logistics facility at  182-198 Maidstone Street, Altona, Victoria, Australia, for A$65.5m ($58m), excluding divestment costs and applicable goods and services tax.

In a bourse filing, ESR-LOGOS REIT said the sale consideration represents a 7.4% premium to the valuation of the property of A$61.0m ($54m).

The REIT will use net proceeds from the divestment to repay outstanding borrowings, finance potential acquisitions, asset enhancement initiatives and redevelopments, and/or fund general working capital requirements. 

Post divestment, the REIT’s portfolio will consist of 71 properties, excluding 48 Pandan Road held through a joint venture, located across Singapore, Japan and Australia, and investments in three property funds in Australia.  

The REIT does not expect the divestment to have a material impact on its net asset value and distribution per unit for the financial year ending 31 December 2024.