CapitaLand Ascendas REIT is divesting three of its logistics assets in Australia.
These assets are namely 77 Logistics Place, 62 Sandstone Place and 92 Sandstone Place and all are located in the state of Queensland.
The total sale consideration for this transaction amounts to SGD64.2 million.
This consideration represents a premium of 6.2% over the total market valuation of the assets collectively.
Assuming that the divestment was completed on 1 January 2022, the proforma impact on the REIT’s net property income and distribution per unit for the financial year ended 31 December 2022 would have resulted in a decrease of SGD3.9 million and SGD0.040 Singapore cents, respectively.
The divestment is expected to complete within the first quarter of 2024.
Following the completion, CapitaLand Ascendas REIT will own 228 assets comprising 97 properties in Singapore, 33 properties in Australia, 48 properties in the United States, and 50 properties in the United Kingdom/Europe.
The REIT’s manager has indicated that it is entitled to a divestment fee of 0.5% of the sale consideration, which will be paid in cash.
The divestment is not expected to have any material impact on the REIT’s net asset value and distribution per unit for the financial year ending 31 December 2023.
CapitaLand Ascendas REIT was last done on the Singapore Exchange at SGD2.94, which presently implies a distribution yield of 5.25% according to data on the Singapore REITs table.