Ascendas Sells 3 Industrial Assets for $125m3 June 2021
Singapore’s listed Ascendas REIT has sold 3 industrial assets in Australia in a $125m deal.
The Group has sold 82 Noosa Street and 62 Stradbroke Street in Heathwood, Brisbane to Arrow Capital Partners for $101.6m and 1314 Ferntree Gully Road in Melbourne to a Chinese based group for $23.5m.
The combined sale prices are approximately 16.8% higher than the December 2020 market valuations of the properties.
The Heathwood properties were acquired by Ascendas as part of a portfolio acquisition from GIC in October 2015. Our records indicate that the two Heathwood assets were acquired for $107.9m with the sale effectively revealing a capital loss for Ascendas.
Heathwood is located approximately 20 kilometres south-west of Brisbane’s central business district, and have direct access to the Logan motorway. 82 Noosa Street is a 6.2ha site with a lettable floor area of 38,000 sqm across two standalone warehouses leased to Coles. 62 Stradbroke Street is a 4.2ha site which features two standalone warehouses linked by a central canopy and has a lettable area of 24,555 sqm.
1314 Ferntree Gully Road was acquired in June 2018 for $16m. The property is situated in the established industrial precinct of Scoresby, in Melbourne’s eastern suburbs approximately 30 kilometres east of the Melbourne Central Business District, 37 kilometres from the Port of Melbourne and 53 kilometres from the Melbourne Airport. The property comprises three levels of office, a low-bay 6 metres clearance warehouse and an ultra-high bay 15 to 16 metres clearance warehouse that is fully racked. It has a lettable floor area of 16,135004 square metres.
Ascendas indicated that the divestments, which are due to settle in Q3 2021, are in line with the Manager’s proactive asset management strategy to improve the quality of Ascendas Reit’s Australian portfolio and optimise returns for Unitholders.
Following the Proposed Divestment, Ascendas Reit will own 95 properties in Singapore, 34 properties in Australia, 30 properties in the United States and 49 properties in the United Kingdom/Europe.