Ascendas REIT (Areit), Singapore’s first and largest industrial REIT, recently announced a proposed acquisition of 26 logistics properties in the United Kingdom (UK).
This deal came hot on the heels of earlier acquisition deal on Jul 18, for 12 logistics properties in the UK that cost approximately S$360.11 million. In a span of 3 months, there is another pending acquisition. It seems that Areit is highly positive with the outlook of UK logistics sector, motivating the management to expand into the UK in a rather steadfast fashion.
However, should an investor be concerned about successive acquisition deals? Are the assets being acquired at a good price? Would the acquisition benefit Areit unitholders by boosting its Distribution per Unit without incurring excessive debts?
Let us find out more details about the proposed acquisition.
Freehold Assets With Quality Tenants
Overview of assets to be acquired. Source: Areit Proposed Acquisition presentation slides