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Ascendas Real Estate Investment Trust (REIT) will make its maiden foray into Europe, with the proposed acquisition of 12 logistic properties in the UK.
The Reit will acquire the properties for £207.27 million ($373.15 million) from two third-party vendors, namely – Oxenwood Catalina Midco Limited and Oxenwood Catalina II Midco Limited. The acquisition is expected to be completed by Q3 2018.
Following the completion of the acquisition, Ascendas-Singbridge Group, via its subsidiary Ascendas Management (UK) Ltd, will provide the trust with asset management and other related services in respect to the properties.
Strategically situated in established distribution centres, the properties enjoy good connections to core urban areas, making them well-poised to capitalise on the increasing demand for supply chain as well as logistic services in the UK.
“The investment presents an attractive and meaningful entry into the UK market,” said William Tay, executive director and chief executive officer of Ascendas Reit’s manager.
“The portfolio has a long weighted average lease expiry (WALE) of 14.6 years and is largely comprised of freehold land. These are appealing attributes that will strengthen our existing portfolio.”
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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