The Singapore-listed ESR-REIT has acquired its sixth industrial asset in Australia this month, buying a facility in Melbourne for A$52.5m (€32m) from Centuria Property Group.
The property at 18 Foxley Court, Derrimut, sits within Melbourne’s established western and south-eastern industrial and logistics precincts. Completed nine years ago, it is fully occupied and has a weighted average lease expiry of 4.8 years.
It is located within the vicinity of the five institutional-grade freehold logistics assets that ESR-REIT bought earlier this month from Frasers Property in early July.
ESR-REIT said the total purchase cost of the six properties was A$360m, which would be funded with proceeds from the divestment of properties and debt financing.
As part of its capital management strategy, the manager said that it may, subject to market conditions, issue subordinated perpetual securities to partially repay the debt financing drawn down to fund the proposed portfolio acquisition. But the manager does not intend to issue new units to finance the acquisition which is due to be completed in the third quarter of this year, it added.
Following the completion of the deal, Singapore will continue to account for more than three-quarters of the Reit’s enlarged portfolio by rental income. Australia’s contribution will increase to 16.1% from 12.7%.
To read the latest IPE Real Assets magazine click here.
