In Australia, Home Consortium (HMC) is buying three Woolworths-based neighbourhood centres in NSW and Victoria from the supermarket group for A$127.8m, as well as a residential aged care facility in NSW for A$32.59m.
The company said it would raise A$170m to pay for the deals through a A$140m fully underwritten institutional placement and a A$30m non-underwritten security plan purchase.
“The acquisitions announced today are an exciting step for HomeCo and increase daily needs and HealthCo services tenant exposure to 47%, consistent with HomeCo’s strategy of increasing its weighting towards hyper-convenience based retail and healthcare & wellness assets,” said HomeCo executive chairman and CEO David Di Pilla. (Read more)
The biggest A-REIT swings were ALE Property Group (LEP), which fell 2.21% to A$4.86, and Rural Funds Group (RFF), which jumped 5.21% to A$2.02.
The S&P/ASX 200 A-REIT index jumped 2.53% to 1,240.00, as the S&P/ASX 200 index closed 0.62% higher at 5,934.40.
Singapore
The FTSE ST Real Estate Investment Trusts index increased 0.86% to 823.84, in line with the Straits Times Index, which rose 0.78% to 2,610.17.
Ascendas REIT (A17U) is buying a logistics property development in the Sydney suburb of Yennora from Larapinta Project for S$21.1m, the company announced.
“Despite the COVID-19 pandemic, Sydney continues to be the strongest industrial market in Australia underpinned by robust tenant demand and sustained levels of investor interest,” said William Tay, executive director and CEO of the REIT’s manager.
The development is expected to be completed in the second quarter of 2021. The net property income yield for the first year will be about 5.8% post-transaction costs, and the deal is expected to be DPU accretive. (Read more)
OUE Commercial REIT (TS0U) posted the highest S-REIT share gains, up 3.95% to S$0.4, while Ascendas India Trust (CY6U) stocks retreated 3.73% to S$1.29.
Japan
Japan Hotel REIT Investment Corp. (8985) is selling the Sotetsu Fresa Inn Shimbashi-Karasumoriguchi hotel in Tokyo to an undisclosed buyer for JPY 8bn, according to the REIT.
The REIT is expected to gain JPY 3.156bn from the sale of the limited service hotel, and will use the proceeds to improve its liquidity amid the challenging COVID-19 conditions.
“The business environment in the hotel market has been challenging due to the global spread of COVID-19, and at present, it has been still difficult to forecast the impact on our hotel performance,” the trust said. (Read more)
The biggest J-REIT moves were GLP J-REIT (3281), which tumbled 2.30% to JPY 152,900, and Daiwa House REIT Investment Corp. (8984), which closed 3.15% higher to JPY 262,000.
The Tokyo Stock Exchange REIT index edged 0.17% higher to 1,669.58, while the Nikkei 225 index fell 0.75% to 22,121.73.
In Hong Kong, the stock exchange was closed for a public holiday.