A-Reit buys 2 properties from Super Coffeemix
INDUSTRIAL property fund Ascendas Real Estate Investment Trust (A-Reit) has bought two properties from Super Coffeemix for $49 million.
It will pay $33.5 million for Super Industrial Building at No. 2 Senoko South Road and $15.5 million for 26 Senoko Way.
Both properties are light industrial buildings located within the designated food zone in Woodlands East Industrial Estate.
A-Reit will lease the assets back to the mainboard-listed 3-in-1 instant coffee-maker for seven years with an option to renew for an additional seven years, it said in a statement yesterday.
The fund will also pay $820,000 in acquisition costs.
The deal is expected to increase A-Reit’s distributable income per unit (DPU), the fund said.
Assuming the acquisition had been made earlier and the properties held for the whole financial year ended March 31 this year, it would have boosted A-Reit’s DPU by 0.04 cent for that time, said the trust.
Its DPU for the second quarter ended Sept 30 was up 8.6 per cent over the previous year to 3.2 cents.
This latest acquisition comes after A-Reit announced four proposed investments earlier this year, worth $180 million in total, that have yet to be completed.
Super Industrial Building, a seven-storey property sitting on a 101,040.8 sq ft site, has a 60-year lease that took effect on June 1, 1996.
The other building, 26 Senoko Way, is on a 100,319.6 sq ft plot. It also has a 60-year lease, which started on Sept 16, 1992.
Super Coffeemix intends to use the proceeds from the sale to fund future acquisitions, said company chairman David Teo in a statement.
The deal ‘would boost our war chest by $49 million and we are on the lookout for potential acquisition targets that will add synergies to our current operations’, he said.
These include companies in Asia and Europe with established food and beverage brands, Mr Teo added.
He also said that the purchase is in line with the group’s ‘asset-light strategy’ and will increase its competitiveness.
$49m acquisitionA-Reit will pay $33.5 million for Super Industrial Building at No. 2 Senoko South Road and $15.5 million for 26 Senoko Way.
It will lease the assets back to the mainboard-listed 3-in-1 instant coffee-maker for seven years with an option to renew for an additional seven years.
Source : Straits Times - 24 Oct 2006
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