Singapore-listed ESR-REIT has acquired five freehold logistics properties in Australia from vehicles managed by Australand Property for A$276.8m (€168m).
The trust said the price paid for the assets, located in Melbourne, reflected a 1.9% discount to the properties’ market valuation and the investment is expected to be earnings-accretive.
Adrian Chui, CEO and executive director of ESR REIT’s manager, said: “The proposed acquisitions mark an important step in the execution of ESR-REIT’s total return strategy and reflect our disciplined approach to capital recycling.
“Following the divestment of selected non-core and mature assets ahead of diminishing returns setting in, we are redeploying capital into five institutional-grade freehold logistics assets in Melbourne acquired at an attractive discount to valuation.”
Chui said with a higher- quality portfolio, enhanced financial flexibility and a disciplined capital allocation framework, ESR-REIT was well-positioned for sustainable income and capital growth.
The manager intends to fund the acquisition with proceeds from the divestment of properties and debt financing.
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