Singapore-listed industrial REIT, Ascendas REIT (SGX:A17U) announced on 24 December that it will be acquiring a logistics property in Sydney, Australia for AUD76.6 million (SGD76.6 million).

The property, 6-20 Clunies Ross Street, Pemulwuy, will be acquired from Deka Australia One GmbH

“The proposed acquisition will be our 10th logistics facility in Sydney and our 27th in Australia”, said Tan Ser Ping, Executive Director and Chief Executive Officer of the REIT’s manager. “It is another premium quality property with characteristics similar to our earlier acquisitions in Australia, such as freehold land, long weighted average lease expiry (WALE) of 6.1 years and triple net leases”, he said.

“Furthermore, current tenants in the property are two reputable government-related entities, Australia Post and New South Wales Police”, Tan added.

The property is expected to generate a net property income yield of approximately 7.1% pre-transaction costs (6.6% post transaction costs) in the first year and expected to be inducted in the first quarter of 2016, subject to receipt of Australian Foreign Investment Review Board clearance, said the REIT.

Upon induction of the new property, Ascendas REIT’s weighted average lease term to expiry is expected to increase from 3.83 years to 3.85 years. The REIT’s portfolio will then comprise a total of 102 properties in Singapore, 27 properties in Australia and two business park properties in China.

Units of Ascendas REIT are currently trading on the Singapore Exchange at SGD2.28.