- The GPT Group (GPT) purchased a portfolio of 23 logistics facilities and one office asset from Ascot Capital for $681.7 million
- The company says the deal offers a 4.3 per cent starting yield and is accretive to funds from operations in year one
- GPT CEO Bob Johnston added the Ascot portfolio is a great addition to the group’s existing $3.5 billion logistic portfolio
- About 70 per cent of the purchased portfolio by income is leased to government, ASX-listed, or international companies
- Shares in GPT are up 0.79 per cent to $5.11
The GPT Group (GPT) has acquired a portfolio from Ascot Capital consisting of 23 logistics properties and one office asset for $681.7 million.
The acquisition is scheduled to close in November 2021 and is 75 per cent weighted to eastern seaboard states and the ACT.
The company said the deal offers a 4.3 per cent starting yield and was accretive to funds from operations in year one.
The 23 logistics assets bought comprise of 161,700 square metres of gross lettable area and are completely leased, with a weighted average lease expiry (WALE) of 9.8 years at September 30.
The purchased 6-level 10,200 sqm office facility is located in the Canberra CBD and has a WALE of 4.7 years,
GPT CEO Bob Johnston explained the Ascot portfolio is a great addition to the group’s existing $3.5 billion logistic portfolio.
“The acquisition will increase GPT’s investment portfolio weighting to the logistics sector to 26 per cent, progressing us closer toward our medium-term target of approximately 30 per cent,” he said.
“Growth in the sector will also be realised through GPT’s logistics development pipeline, with an expected end value of approximately $1.4 billion.”
About 70 per cent of the purchased portfolio by income is leased to government, ASX-listed, or international companies.
GPT did not buy three office assets and one logistics asset from the initial portfolio being advertised for sale by Ascot Capital.
“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,” Mr Johnston said.
“The Ascot portfolio acquisition will increase our Logistics portfolio to $4.1 billion and reaffirms GPT’s significant position in the Australian Logistics market.”
The debt-financed transaction will increase gearing to 27.9 per cent (pro forma June 30 2021), remaining within the midpoint of GPT’s planned gearing range of 25 to 35 per cent.
Shares in GPT are up 0.79 per cent to $5.11 at 12:00 pm AEDT.