Ascendas REIT to buy 26 properties in Australia for $1.013b
Becoming the country’s 8th largest industrial landlord.
The REIT is set to make a big splash in Australia, as it diversifies its income streams and tenant base following its acquisition of 26 freehold assets in the country.
According to OCBC, the land total amounts to 630,946 sqm, and the purchase would be financed with Australia onshore loans and perpetual securities.
“Out of these 26 properties, nine are located in Melbourne, the largest industrial property market in Australia in terms of land stock, another nine are in Sydney, seven in Brisbane and one in Perth,” OCBC said.
Though the acquisition is not exactly cheap, OCBC says Ascendas REIT would benefit from it in the long term, granting the company stability.
“The acquisition is expected to propel A-REIT to become the eighth largest industrial landlord in Australia, giving it the scale to benefit from the long-term growth prospects of the ecommerce industry,” OCBC added.
Meanwhile, OCBC says Ascendas REIT plans to overcome risk through appropriate management strategies.
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