Ascendas Reit is scaling up its portfolio in the UK with the proposed acquisition of 26 logistics properties for €289.6m (£257.5m). The 26 well-located logistics properties have a total gross internal area of 266,184m². The assets are sited on freehold land (with the exception of one property on 965-year leasehold land) in established industrial areas within the West Midlands, North West England, South East England and Yorkshire and the Humber. They are well accessible to the major motorways and junctions such as the M5, M6 and M40, providing good connections to a large catchment of UK’s population.
The portfolio is 100% occupied. The acquisition is expected to generate a net property income yield 4 of approximately 5.54% pre-transaction costs in the first year (5.39% post-transaction costs). Completion is expected to take place in the fourth quarter of 2018.
Upon completion, Ascendas Reit will own a total of 98 properties in Singapore, 35 properties in Australia and 38 properties in the UK. The UK properties will make up 8% of Ascendas Reit’s total portfolio asset value (from 4%).
William Tay, Executive Director and Chief Executive Officer of Ascendas Funds Management, the manager of Ascendas Reit said: “Overall, this acquisition fits strategically with our current UK portfolio. 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. It will also broaden our customer base to include renowned companies such as Aston Martin Lagonda, Royal Mail Group and Sainsbury’s Supermarkets, and improve the resilience and sustainability of our income.”
