AIMS APAC REIT (AA REIT) (SGX:O5RU
) announced that it has entered into a contract of sale with an unrelated third party to acquire the property located at 398 Bushmead Road and 286 Stirling Crescent, Hazelmere, Western Australia, comprising two adjoining freehold land plots.
The total acquisition outlay comprises a purchase consideration of A$42.7 million ($38.43 million), which is subject to completion adjustments which are not material, according to the REIT manager.
Based on the passing income and purchase consideration, the acquisition reflects a Year 1 net property income (NPI) yield of 5.3%, which translates into distribution per unit (DPU) accretion of 0.3% based on 100% debt funding. The acquisition is expected to be completed in 2QFY2027.
According to the manager, the property comprises a freehold industrial site with a total land area of 91,547 sqm and a gross floor area (GFA) and total net lettable area (NLA) of 12,310 sqm of warehouses, workshops and offices.
The property is fully leased to Swan Materials under a 10-year triple-net lease that commenced on Oct 1, 2025 and the lease is subject to an annual rental escalation of 3.25% and comes with two 10-year renewal options.
“Beyond the positive accretion impact, the property offers significant long-term redevelopment potential into modern warehouses or data centres given the large scale landholding, strategic location within Perth’s eastern logistics and industrial corridor and proximity to a major power substation,” says Russell Ng, CEO of the manager.
See also: ESR-REIT to buy five Melbourne logistics assets from Frasers Property for A$276.8 mil
“Looking ahead, we will continue to selectively pursue acquisition opportunities in our target markets of Singapore, Australia and New Zealand, that align with our investment strategy and is able to deliver sustainable long-term returns for Unitholders,” adds George Wang, chairman of the manager.
As of 9.17am, Units in AA REIT was trading 1 cent lower, or 0.6% down at $1.63.
