AIMS AMP Capital Industrial REIT is buying a 49 per cent stake in Optus Centre in Sydney.
Get the full story from The Straits Times.
The Optus Centre is a premium business park located at Macquarie Park in Sydney's north. The acquisition will cost A$184.425 million (S$215.0 million1 ).
Here is the full statement from AIMS AMP Capital:
SINGAPORE - AIMS AMP Capital Industrial REIT Management Limited (the Manager) as manager of AIMS AMP Capital Industrial REIT (the Trust or AACI REIT) today announced it has entered into a conditional agreement with a Stockland (ASX: SPG) managed fund, Stockland Direct Office Trust No. 2, to acquire a 49 percent indirect interest in the Optus Centre, a premium business park located at Macquarie Park in Sydney's north, for A$184.425 million (S$215.0 million ).
Optus Centre is 100 per cent leased to Optus Administration Pty Limited for a weighted average lease term of 8.6 years with fixed annual escalation of three per cent. This will increase the weighted average lease expiry of the Trust to 4.0 years from 3.0 years as at 30 September 2013 on a pro forma basis. Optus Administration Pty Limited is a wholly owned subsidiary of SingTel Optus, which is the second largest telecommunications company in Australia, and is a wholly owned subsidiary of the internationally recognised leading telecommunications group, SingTel.
The proposed acquisition represents the Trust's first acquisition in Australia, with the Trust leveraging on the network and on-the-ground real estate expertise of the Trust's two Australian sponsors, AIMS Financial Group and AMP Capital.
The Manager's Chief Executive Officer, Mr Nicholas McGrath said: "This investment enables the Trust to acquire a premium asset which is accretive to the Trust, provides long-term cashflow certainty, strengthens our asset base and diversifies our portfolio with the addition of a premium business park office campus leased to Optus.
"This accretive acquisition will create significant long term growth for the Trust.
Distribution Per Unit (DPU) and Distribution Yield will increase by 5.7 per cent and 5.6 per cent respectively on a pro forma basis.
In addition, Net Property Income (NPI) yield will increase to 6.6 per cent from 6.3 per cent on a pro forma basis ," Mr McGrath said.
The acquisition will be fully funded by debt from a combination of existing and new debt facilities.
Sixty percent (A$110.66 million) of the purchase price will be funded by a new five year AUD term loan facility, providing a substantial natural currency hedge. The balance of the purchase price will be funded by an existing dual currency SGD/AUD revolving credit facility.