Singapore-listed industrial REIT, Mapletree Logistics Trust, announced on 29 May that it will be acquiring four dry warehouse facilities in Sydney, Australia for AUD85.0 million (SGD84.4 million).

The properties, namely 114 Kurrajong Avenue in Mount Druitt, 53 Britton Street in Smithfield, 405-407 Victoria Street in Wetherill Park, and 3 Distillers Place in Huntingwood, are being acquired from a closed private equity fund known as the Altis Real Estate Equity Partnership (AREEP) II Fund.

The industrial properties are fully leased to seven tenants in the logistics, transportation, chemicals and financial sectors, and feature a weighted average lease expiry (WALE) of 5.5 years.

“Located approximately 30 kilometres from the central business district, they will expand our footprint in Sydney to five assets with a combined gross floor area of 108,300 square metres”, said Ng Kiat, CEO of the REIT’s manager, in a statement on the purchase.

The acquisition will be funded by proceeds raised from the issuance of SGD250 million worth of perpetual securities that was reported by REITsWeek on 25 May.

Upon acquisition, Mapletree Logistics Trust’s gross revenue contribution from Australia will account for approximately 6.1% of its overall gross revenue, up from 4.3% currently. The REIT’s total portfolio will increase to 122 properties with a book value of approximately SSGD5.2 billion

The acquisition is expected to complete by July 2016, subject to Australian Foreign Investment Review Board’s approval.

Units of Mapletree Logistics Trust are currently trading on the Singapore Exchange at SGD0.975.