Charter Hall snaps up A$115m Sydney logistics property and other APAC REIT news

In Australia, Charter Hall Group (CHC) has acquired a $115m logistics property in Sydney on behalf of its Charter Hall Prime Industrial Fund and Charter Hall Direct Industrial Fund No.4, reflecting a 4.75% core cap rate.

The Erskine Park distribution facility has 43,000 sq.m. of gross lettable area, and was originally developed  as the national distribution centre for the tenant, Winc, in 2008.

Winc has entered into a new 12-year lease set to commence at expiry of their current lease in August 2020, providing annual rental escalations of 3.25%.

“The acquisition provides a rare opportunity to secure a major logistics facility in the tightly held Western Sydney growth corridor that is supported by convenient access to M4 & M7 Motorways and major infrastructure projects underway including the Badgerys Creek Aerotropolis,” said CPIF fund manager Richard Mason. Charter Hall stocks finished trading down 0.74% at A$9.44. 

The S&P/ASX 200 A-REIT index declined 0.50% to 1,199.70, while the S&P/ASX 200 index rose 0.59% to 5,955.50.

The biggest A-REIT swings were Arena REIT (ARF) shares, which climbed 3.70% to A$2.24, and Carindale Property Trust (CDP), which tumbled 2.57% to A$3.41. 

Japan

Nippon Accommodations Fund Inc. (3226) extended its JPY 5bn commitment lines with Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank and Mizuho Bank to July 2023. 

The REIT said the commitment lines were originally established in 2016 and 2018, and were due to mature a year earlier in July 2022. The REIT’s shares closed 0.44% higher at JPY 680,000. 

The Tokyo Stock Exchange REIT index edged 0.15% lower to 1,685.55, as the Nikkei 225 Index grew 0.40% to 22,529.29.

Shares in SOSiLA Logistics REIT Inc. (2979) soared 4.55% to JPY 147,000 in one of the biggest moves of the day, while Hoshino Resorts REIT Inc. (3287) stocks dipped 4.84% to JPY 422,500.

Singapore

Dasin Retail Trust (CEDU) completed its acquisitions of the Shunde Metro and Tanbei Metro malls in the Guangdong-Hong Kong-Macau Greater Bay Area for S$375m. 

“We are delighted and excited to complete the acquisition of the Properties, bringing our total retail malls to seven,” said Wang Qiu, CEO of the trustee-manager of DRT. “This acquisition marks a significant milestone for DRT as this is our second acquisition in a short span of three years of listing.”

Dasin Retail Trust shares rose 1.28% to S$0.79. 

The FTSE ST Real Estate Investment Trusts index fell 1.33% to 837.43, and the Straits Times Index retreated 0.63% to 2,652.65.

Among the biggest share price moves were BHG Retail REIT (BMGU) shares,which plummeted 10.48% to S$0.56, and ARA LOGOS Logistics Trust (K2LU), which rose 1.68% to S$0.61.

Hong Kong 

The Hang Seng REIT index sank 1.72% to 5,693.32, despite the Hang Seng index growing 0.31% to 26,210.16.

Most Hong Kong REITs finished trading down or flat, with just Spring REIT (1426) closing higher, up 1.21% to HK2.51.

Sunlight REIT (435) shares posted the biggest change of the day, falling 4.34% to HK$3.97.

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Benn is a freelance journalist and the publisher of APAC Real Estate. He has reported for the Herald Sun, REFI Europe, S&P Global Market Intelligence, Leader Newspapers, and more.