Kidman Park (Google Maps)

ARA LOGOS Logistics Trust (ALOG) has entered into a sale and purchase agreement with 1835 Capital Pty Ltd for the sale of its Kidman Park asset.

The property is being disposed of at a proposed sale consideration of AUD41.5 million.

The freehold asset was completed in 1964 and added to ALOG’s portfolio in 2015.

The proposed sale consideration is approximately 3.8% above the AUD40.0 million valuation conducted by CBRE Valuations Pty Limited as at 31 December 2020.

“The proposed divestment is in line with ALOG’s proactive asset management strategy to rebalance ALOG’s portfolio where capital is intended to be redeployed to building a more resilient portfolio”, said the REIT.

With this sale, it will provide us with the financial flexibility to recycle capital and invest in other value-adding properties”, said Karen Lee, CEO of the REIT’s manager.

“We may also utilise the proceeds to pare down debt which will improve ALOG’s debt headroom for potential acquisitions of quality assets or strategic opportunities to unlock further value for the existing portfolio”, she added.

The proposed divestment is expected to complete by 1H 2021.

ALOG was last done on the SGX at SGD0.765, which implies a distribution yield of 6.86% according to data compiled on the Singapore REITs table.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.