Ascot Capital has sold an $800 million-plus commercial property portfolio.
The bulk, 23 logistics investments and an office – all up worth $681.7m – is trading to GPT at a 4.3 per cent initial yield.
The balance, two offices and an essential services asset, is being picked up by MA Financial for a speculated $125m at a c5.2pc return.
Another commercial building Ascot listed as part of the portfolio didn’t sell.
CBRE’s Chris O’Brien and Morgan Stanley’s Tim Church were the agents.
The deal comes four weeks since Ascot sold Dexus Perth’s Jandakot Airport and an adjoining part-developed industrial estate for a total of $1.3 billion.
GPT logistics portfolio grows to $4.1b
With the Ascot deal, set to settle in November, GPT now manages logistics assets worth $4.1b.
“The…portfolio with a nine year Weighted Average Lease Expiry and strong tenant covenants is a great addition to GPT’s existing…logistics portfolio, and is in line with our strategy to continue to grow our exposure to the…sector through development and acquisitions,” the group’s chief executive officer, Bob Johnston said (story continues below).
“The acquisition will increase GPT’s investment portfolio weighting to the logistics sector to 26 per cent, progressing us closer toward our medium-term target of approximately 30pc,” he added.
“Growth in the sector will also be realised through GPT’s logistics development pipeline, with an expected end value of approximately $1.4b,” according to the executive.
“The acquired portfolio is 75pc weighted to eastern seaboard states and the ACT.
“The 23 logistics assets…totalling 161,700 square metres of gross lettable area, are located across Australia and are fully leased with a WALE at 30 September, 2021, of 9.8 years.
“The six level, 10,200 sqm office asset [14 Mort Street, pictured top, which Ascot picked up for $41.5m in 2016] is well located in the Canberra CBD with a WALE of 4.7 years.
“Approximately 70pc of the acquired portfolio by income is leased to government, ASX listed or multinational entities which is in line with GPT’s existing portfolio”.
More to come.