Singapore’s Ascendas buys logistics portfolio for £257.5m
Singapore’s Ascendas REIT has acquired its second UK industrial portfolio for £257.5m.
Singapore’s listed business space and industrial real estate investment trust has bought 26 logistics properties from Griffin Group.
The deal comes after it bought 12 industrial assets from Oxenwood in the summer.
Singapore’s Ascendas REIT has acquired its second UK industrial portfolio for £257.5m.
Singapore’s listed business space and industrial real estate investment trust has bought 26 logistics properties from Griffin Group.
The deal comes after it bought 12 industrial assets from Oxenwood in the summer.
Ascendas REIT said it had entered into a sale and purchase agreement with Griffin to buy all the issued share capital of Griffin UK Logistics Fund and its nine wholly owned subsidiaries.
The properties, which are 100% occupied, are located in key logistics locations with about 70% of the portfolio’s gross internal area situated within the West Midlands.
William Tay, executive director and chief executive of Ascendas Funds Management, the manager of Ascendas REIT, said: “Overall, this acquisition fits strategically with our current UK portfolio.
“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.”
The acquisition is expected to generate a net property income yield of around 5.54% before transaction costs in the first year.
The deal is expected to be completed in the fourth quarter of 2018. If it goes ahead, it will increase Ascendas REIT’s portfolio to a total of 98 properties in Singapore, 35 properties in Australia and 38 properties in the UK.
CBRE advised Griffin.
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