A-REIT snaps up $1.01b Australian logistics property portfolio

It will become one of the largest industrial landlords.

Ascendas Real Estate Investment Trust (A-REIT) will acquire 26 logistics properties in Australia for a hefty sum of $1.01b (AS$1.01b), making it the eighth-largest industrial landlord in the continent.

The logistics portfolio will be acquired from the real estate arm of GIC and Frasers Property Australia through their controlled subsidiaries and affiliates.

A-REIT has established Ascendas Logistics Trust in Australia in order to facilitate the acquisition.

A-REIT is expected to incur estimated transaction costs of about $64.8m (A$64.8m), which includes stamp duty, professional advisory fees and the acquisition fee payable to the Manager.

The acquisition is expected to generate a net property income yield of approximately 6.4% pre-transaction costs in the first year. The deal will be completed in the fourth quarter of 2015.