Ascendas REIT is disposing of three of its Australian logistics assets to unrelated third parties for AUD125.1 million (SGD128.7 million).
The properties are namely 82 Noosa Street and 62 Stradbroke Street in Brisbane, and 1314 Ferntree Gully Road in Melbourne.
The total sale price of AUD125.1 million is approximately 16.8% higher than the total market valuations of the properties of AUD107.1 million as at 31 December 2020.
The proposed divestments are not expected to have any material effect on Ascendas REIT’s net asset value and distribution per unit (DPU) for the financial year ending 31 December 2021.
Assuming the divestment were completed on 1 January 2020, the annualised proforma impact on Ascendas REIT’s net property income would have been a decrease of SGD5.1 million and DPU would have decreased by 0.075 Singapore cents for FY2020.
If the net proceeds from the divestment were used to repay Ascendas REIT’s borrowings as at 31 March 2021, its aggregate leverage will be reduced from 38.0% to approximately 37.5%.
Following the transactions, the REIT will own 95 properties in Singapore, 34 properties in Australia, 30 properties in the United States and 49 properties in the UK and Europe.
Ascendas REIT was last done on the Singapore Exchange at SGD2.90, which implies a distribution yield of 5.06% according to data compiled on the Singapore REITs table.