Ascendas REIT buys Sydney suburban office for A$167m and other APAC REIT news

Singapore-listed Ascendas REIT has bought a suburban office building development in Sydney from Frasers Property Industrial and Winten Property for A$167.2m.

Located at 1 Giffnock Avenue in Macquarie Park, the property will be developed on a 3,308 sq.m. site and feature 19,384 sq.m. of net lettable area once completed in 2022.

The nine-storey building is the REIT’s first acquisition in Macquarie Park, the largest metropolitan market in Australia, and its fifth suburban office deal in Australia.

The deal, which is scheduled to close this year, comes with a 6.1% net property income yield post-transaction costs and a three-year rental guarantee from completion on vacant rental spaces.

“We believe that decentralisation trends will continue to benefit Macquarie Park which has already attracted many leading companies who have set up their headquarters in the precinct,” said William Tay, executive director and CEO of the REIT’s manager.

Ascendas REIT shares finished trading 0.61% lower at S$3.26 on Monday.

IndexChangeValue at close
S&P/ASX 200 A-REIT-1.25%1,284.00
S&P/ASX 200
FTSE ST REITS -0.98%854.28
Tokyo Stock Exchange REIT
Nikkei 225
+0.18% 23,360.30
Hang Seng REIT -1.09%5,547.43
Hang Seng-2.06% 23,950.69

IREIT Global looks to raise S$142m to fund Spanish office deal

Shares in SGX-listed IREIT Global closed 6.16% lower on Monday after the trust launched a rights issue to raise S$142.8m, as part of its recent acquisition of an office portfolio in Spain.

The issue comprises more than 291m units to be sold at S$0.49 per unit, representing a 32.9% discount to its closing price of S$0.73 last Friday.

The REIT plans to buy the remaining 60% interest in a portfolio of four freehold multi-tenanted office buildings located in Madrid and Barcelona from its joint-venture partner Tikehau Capital.

IREIT will also use the proceeds to repay a €32m loan from its other joint-venture partner, City Developments Limited.

“With the Spain properties’ passing rents currently below market rates, there is potential for positive rental reversions,” said Louis d’Estienne d’Orves, CEO of the REIT’s manager. “Importantly, the Spain properties are also complementary to our existing portfolio and will increase our portfolio strength through diversification.”