Singapore’s Soilbuild REIT enters Australia with two acquisitions costing a total of $116.25 million

The chicken processing plant in Burton (outlined), which Soilbuild REIT is paying $61.25 million for.

Perth-based Ascot Capital has sold a poultry plant in South Australia and an office building in the Australian Capital Territory for a total of $116.25 million.

Both sites were purchased by Singapore-based Soilbuild REIT – which has established a wholly owned management investment trust called Soilbuild Australia for its maiden local purchases.

Following these acquisitions, Soilbuild will control 13 assets worth a total of S$1.23 billion – or A$1.25 billion. All its other properties are in Singapore.

In the biggest deal, Soilbuild is paying $61.25 million for an Inghams poultry plant in Burton, covering the addresses of 118, 1120, 1122-1136 and 1138-1146 Port Wakefield Road, about 20 kilometres north of the Adelaide CBD.

The purpose-built 21,424 square metre facility (pictured, above), configured with a slaughter house, cold storage, distribution facility and offices, is leased until 2034 to Inghams Enterprises Australia which has five further 10-year option periods.

In Canberra, Soilbuild is acquiring a 22-year old office called Australia Place at 14 Mort Street (pictured, top). Fully occupied by the Commonwealth government on a lease expiring in 2025, the eight-storey building, with 9384 sqm of area, is costing $55 million. Ascot Capital paid Charter Hall Group $41.5 million for this asset in April 2016.

Soilbuild’s chief executive officer Roy Teo said “We are excited by this opportunity to gain entry into the Australian market with an acquisition of a portfolio of long tenure assets on leaseback arrangements with financially strong tenants”. The proposed acquisitions are expected to be yield-accretive based on our intended funding scenario, enhance the quality of our portfolio and provide geographical diversification.”

Marc Pallisco

A freelance property writer and experienced analyst, Marc is the co-founder of realestatesource.com.au

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