The deal looks done – AIMS APAC Reit announced that it had entered into a contract for sale agreement to acquire Woolworths Headquarters. The purchase consideration was S$454 mil and the site is fully leased to Woolworths Group Limited. The Initial Net Property Income (NPI) yield is 5.17%.
I spoke about this possible acquisition in my last blog on AA reit – I would be cautious on AA REIT and the reason why I would be careful in trading AA reit shares. Following this latest update, I am even more cautious of it now as this deal increases the risks of investing in AA Reit.
However, I want to mention that it does not by itself, mean that the deal is bad. It just means that when we invest in AA Reit, we have to be more careful and aware of the risks that we have taken on. If we are not comfortable, we may want