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In driving their inorganic growth strategy, industrial REITs showed high activity over the last two months, with Mapletree Logistics Trust (MLT) recently acquiring the remaining 38 percent strata share value of a Hong Kong property for $103.7 million, reported Singapore Business Review citing OCBC Investment Research.
MLT plans to enhance the attractiveness of Shatin No. 3, which is currently vacant, via a $5.12 million renovation.
Ascendas Reit, on the other hand, purchased a suburban office in Brisbane for $109 million.
The asset is expected to have an initial net property income yield of 6.5 percent, or 6.1 percent post-transaction cost, said OCBC.
However, not all acquisitions by industrial Reits were made overseas, noted OCBC.
ESR Reit, for instance, acquired an 80 percent stake in a special purpose vehicle (SPV) for $240 million. The SPV owns the leasehold interest in a high-specification property at 7000 Ang Mo Kio Avenue 5.
This article was edited by Keshia Faculin.
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