This article is from the Australian Property Journal archive
GPT has spent $681.7 million on 24 assets from Ascot Capital, bringing its total logistics portfolio up to $4.1 billion.
The Ascot Capital portfolio includes 23 logistics assets, and one office asset, weighted 75% to the eastern seaboard states and the ACT and with a 9-year WALE. With around 70% of the portfolio by income leased either to the government, ASX-listed companies or multinationals.
The logistics assets are fully leased and span 161,700sqm of GLA, with a WALE at 30 September 2021 of 9.8-years, adding to GPT’s current $3.5 billion logistics portfolio.
These assets bring GPT’s investment portfolio weighting to the logistics sector to 26%, with the group targeting a 30% weighting to the sector. A target which will also be underpinned by the group’s logistics development pipeline, that has an end value of around $1.4 billion.
GPT continues to strategically reweight towards logistics as industrial demand for the first time in history, outpaces both retail and office demand combined, with logistics deals representing 42% of transactions.
While the single six-level office asset covers 10,200sqm in the Canberra CBD, with a WALE of 4.7 years.
“Strong levels of take up for prime logistics space has resulted in low vacancy rates in the sector and demand is expected to continue to be underpinned by growing investment in supply chain infrastructure,” said Bob Johnston, CEO of GPT.
The acquisitions were funded by debt and will take GPT’s gearing to 27.9% pro forma, which is well within GPT’s target range of 25% to 35%.
The transaction reflects an initial yield of around 4.3% and is accretive to FFO in year one.
“The Ascot portfolio acquisition will increase our logistics portfolio to $4.1 billion and reaffirms GPT’s significant position in the Australian logistics market,” added Johnston.
Ascot Capital also offered three additional office and one logistics asset that were not acquired by GPT.
Settlement for the GPT Group transaction is anticipated to take place in November of 2021.