Cromwell sells Australia logistics facility for A$63m and other APAC REIT news

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The fund management business of ASX-listed Cromwell Property Group (CMW) has sold a distribution centre in South Australia for A$63.05m, reflecting a 19% premium to the asset’s book value. 

The Rand Distribution Centre is a purpose-built cold storage facility located within the industrial precinct of Direk, approximately 27km north of the Adelaide CBD. 

The asset is leased to Rand Transport, a wholly-owned subsidiary of Anchorage Capital Partners, with a 15-year remaining lease term.

“Refrigeration distribution centres have become an increasingly popular investment class in recent years primarily because of the longer lease stability in income,” said Tony Iuliano, head of capital markets, industrial and logistics – Australia, at JLL, which represented the seller.  

“They have drawn increasing attention in the current environment due to domestic consumer demand and the rise in non-discretionary retailing.” (Read more)

Cromwell Property Group shares finished trading 2.87% higher at A$0.895.

Index Change Value at close
S&P/ASX 200 A-REIT +1.21% 1,284.60
S&P/ASX 200 +0.52% 6,161.40
FTSE ST REITS +0.94% 841.68
STI +0.80% 2,559.03
Tokyo Stock Exchange REIT +0.66% 1,745.73
Nikkei 225 +1.35% 23,296.77
Hang Seng REIT -0.53% 5,583.00
Hang Seng -0.26% 25,486.22

Japan: LaSalle Logiport REIT plans to raise over JPY 48bn for new deals

Tokyo-listed LaSalle Logiport REIT (3466) plans to raise more than JPY 48bn through new public and secondary offerings to fund its latest deals in Kawasaki and Tsukubamirai. 

The J-REIT intends to sell 261,904 shares at JPY 170,715 per unit through its public offering, raising more than JPY 46bn. 

In its secondary offering, the REIT will sell 13,096 units at JPY 176,677 per unit in order to collect more than JPY 2.3bn. 

The REIT will use the fundraising proceeds to support its recent acquisitions of the LOGIPORT Kawasaki Bay property in Kawasaki for JPY 32.2bn and the LOGIPORT Shinmoriya asset in Tsukubamirai for JPY 8.58bn. (Read more)

LaSalle Logiport REIT shares closed 0.65% lower at JPY 184,000.

Hong Kong: Struggling hotel market sees Regal REIT post HK2bn loss in 1H 2020

Hong Kong-listed Regal REIT (1881) reported a HK$2.09bn loss during the first six months of 2020, compared to a HK$362.9m loss during the same period last year. 

In its latest earnings, Regal REIT posted a 10.8% year-on-year decline in net income to HK$428.5m, while gross revenue fell 9.3% to HK$429.9m.

Distribution per unit was set at HK$0.060 per share, down from HK$0.068 in 1H 2019. 

“Accordingly, there will be downward pressure on the market rental packages of the five initial hotels and the two iclub hotels for 2021 which, under the lease provisions, are to be determined by September 2020,” the REIT said.  

“However, in accordance with the terms of the leases for the five initial hotels, there is an aggregate minimum floor rent of HK$400m per annum, which provides some baseline protection to Regal REIT against further deterioration in the hospitality market. Moreover, Regal REIT has adequate available undrawn banking facilities that provide it with a very strong financial backing in this challenging environment.” (Read more)

Regal REIT shares closed flat at HK$1.21.