AIMS APAC REIT entered a deal to acquire a Queensland, Australia, property for A$38.46 million, or around S$36.92 million, from GSM Rocket Australia, the Singapore-listed industrial REIT said in a filing to SGX Wednesday.
“The proposed acquisition represents an opportunity to further diversify and strengthen our portfolio with a strategic addition that offers a strong tenant profile and provides income stability to AA REIT,” Koh Wee Lih, the CEO of the REIT manager, said in the statement.
“The outlook for the Gold Coast economy remains positive as the region is currently experiencing growth across key economic factors including strong population growth, investment into major infrastructure developments and an increase in both domestic and offshore tourism into the region,” Koh said. “This investment will enable us to expand AA REIT’s footprint in a market that offers solid long-term growth.”
The acquisition is set to be mainly funded with Australian-dollar debt facilities to keep a natural currency hedge, AA REIT said.
The property will be leased to GSM (Operations) for 12 years with annual rent increments and a rent review at the lease’s mid-term, the filing said.
The first year rental will be A$3.0 million, it said.
When the deal is completed, AA REIT’s portfolio will have 27 industrial properties, with 25 in Singapore.
GSM Rocket Australia and GSM (Operations) are wholly owned subsidiaries of Boardriders, a sports and lifestyle apparel, footwear and accessories producer, with brands including Quiksilver, Billabong and Roxy, the filing said.
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