ESR-LOGOS REIT has proposed to acquire its sponsor's asset in Japan.
The asset is ESR Sakura Distribution Centre, a 5-storey logistics asset located in Sakura City, Chiba Prefecture, Tokyo.
Its purchase consideration is approximately SGD183.5 million (JPY17,800 million) and this is inclusive of a rental support component.
The asset has net lettable area of 81,507 square metres and a weighted average lease expiry (WALE) of 2.9 years as at 30 June 2022.
The freehold property was completed in 2015.
The transaction is expected to be up to 2.9% DPU accretive to unitholders, with funding already secured, said the REIT.
“We are pleased to expand the REIT’s footprint into Japan, our second overseas market, with the acquisition of ESR Sakura DC, a freehold asset that will ride on the strong logistics growth trends in the Greater Tokyo area”, said Adrian Chui, CEO of the REIT’s manager.
Given that the acquisition is being made from its sponsor, ESR-LOGOS REIT will require approval from its unitholders for it.
More details on the acquisition can be found here.
ESR-LOGOS REIT was last done on the Singapore Exchange at SGD0.41, which presently implies a distribution yield of 7.12% according to data on the Singapore REITs table