Ascendas REIT has entered into a land acquisition and fund through facility in Yenorra worth $23.5m.
The property at Lot 7, Kiora Cres is 2.6ha in size was part of a larger site 10ha acquired by the vendor, Larapinta Project Pty Ltd for just $8.8m in 2018. Ascendas have paid $12.65m for the 2.6ha parcel and will fund $10.85m the construction of 13,100sqm building which is yet to be pre-committed. The property was acquired with a nine-and-a-half month rental guarantee from the vendor.
The site is well located in the established inner-western Sydney industrial precinct of Yennora, an area that is enjoying renewed growth given its proximity to central western Sydney and the trend towards last mile logistics. The area is well serviced by the Hume Highway to the south and M4 Motorway to the North that links the west, east and south west of Sydney.
Ascendas advise that the land and development cost, is 19.8% lower than the “as if complete” market valuation of the property (A$29.3 million as at 30 June 2020). The forecast net property income yield for the first year is approximately 6.2% and 5.8% pre-transaction costs and post-transaction costs respectively.
Mr William Tay, Executive Director and Chief Executive Officer of the Manager said, “Despite the COVID-19 pandemic, Sydney continues to be the strongest industrial market in Australia underpinned by robust tenant demand and sustained levels of investor interest. The acquisition of this new prime grade logistics property gives Ascendas Reit greater exposure to the Sydney market and also enhances the quality of our portfolio.”
Ascendas Real Estate Investment Trust (Ascendas Reit) is Singapore’s first and largest listed business space and industrial real estate investment trust. As at 31 March 2020, investment properties under management stands at S$12.8 billion, comprising 197 properties across the developed markets of Singapore, Australia, the United Kingdom and the United States. Ascendas Reit’s portfolio includes business and science parks, suburban office properties, high-specifications industrial properties, light industrial properties, logistics and distribution centres, and integrated developments, amenities and retail properties.
Ascendas Reit is managed by Ascendas Funds Management (S) Limited, a wholly owned subsidiary of Singapore-listed CapitaLand Limited, one of Asia’s largest diversified real estate groups.
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