Ascendas REIT has procured a portfolio of seven logistics properties located across six infill industrial submarkets across Chicago, USA.

The assets are being acquired for SGD133.2 million (USD99.0 million) from third party vendors.

“Following our successful entry into the USA logistics market in November 2021, we are pleased to acquire another portfolio comprising seven logistics properties in Chicago, the largest industrial market in the country based on existing space”, said William Tay, the CEO of Ascendas REIT’s manager.

“This portfolio comes with a long weighted average lease expiry of 5 years and is 100% occupied by 12 tenants from a diverse range of industries including logistics service providers, engineering companies and a food distributor”, he added.

The portfolio features weighted average lease to expiry (WALE) of 5.0 years as at 31 March 2022.

No single customer contributes to more than 20% of the total rental income, and current leases have built-in annual rent escalations ranging between 2.0% and 3.0% per annum.

The proposed acquisition will be funded by Ascendas REIT through internal resources and debt facilities.

Ascendas REIT was last done on the Singapore Exchange at SGD2.76, which presently implies a distribution yield of 5.53% according to data on the Singapore REITs table.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.