Ascendas Reit has agreed to sell three east coast industrial investments for a total of $125.1 million.
The disposals – to two buyers – reflect a 16.8 per cent premium to the ($107.1m) December, 2020, book value.
Settlement is expected in the third quarter.
The Melbourne asset
In Melbourne’s Scoresby, the Singapore group is offloading the former Décor head office and distribution centre at 1314 Ferntree Gully Road.
The deal, with China Tube Pty Ltd in partnership with Haelram Pty Ltd, is worth $23.5m.
Ascendas paid $16.245m three years ago.
On 2.59 hectares it contains 16,134 square metres of lettable area over three floors.
It is currently for lease.
Heathwood properties collect $101.6m
In Brisbane’s Heathwood, Ascendas is selling two logistics investments to SIRE (Strategic Industrial Real Estate), controlled by Arrow Capital Partners, for a total $101.6m. Altis Property Partners will manage them.
The biggest property, 82 Noosa Street (pictured, top), contains two warehouses with a total 38,000 sqm of area, occupied by Coles (story continues below).
The other, 62 Stradbroke St, is also configured with two structures – respectively rented to Linfox and Namour Transport.
With 24,555 sqm of lettable area, it also has a vacancy.
Ascendas acquired both Heathwood properties six years ago.
Disposals improve Australian portfolio: Ascendas
Following the three divestments, Ascendas retains 95 properties – 34 in Australia, 49 in Europe and 30 in the United States.
Six months ago, the landlord paid AMP Capital $288.9m for two Macquarie Park (Sydney) offices – two months after acquiring an unbuilt commercial building in the suburb from Frasers Property Industrial and Winten.
About 23 kilometres away, the offshore investor last July entered a funds-through deal, with Pelligra, for another distribution centre, worth $23.5m.
Ascendas also recently spent $70.3m on an unbuilt logistics centre at Brisbane’s Crestmead, from Goodman.
“The proposed divestments are inline with the manager’s proactive asset management strategy to improve the quality of Ascendas Reit’s Australian portfolio and optimise returns for unitholders,” a statement regarding the latest deals, said.
“The proceeds may be recycled to fund committed investments, repay existing indebtedness, extend loans to subsidiaries, fund general corporate and working capital needs and/or make distributions to unitholders” it added.
“If the net proceeds were used to repay Ascendas Reit’s borrowings as at 31 March, 2021, its aggregate leverage will be reduced from 38pc to approximately 37.5pc”.