GPT Buys Mega Logistics Portfolio from Ascot Capital
Posted on 10/18/2021
The GPT Group bought a portfolio from Ascot Capital, comprising 23 Logistics assets and one Office asset for A$ 681.7 million. Settlement of the transaction is expected in November 2021. The debt funded transaction will take gearing to 27.9% (pro forma June 30, 2021), remaining below the mid-point of GPT’s target gearing range of 25% to 35%.
The acquired portfolio is 75% weighted to eastern seaboard states and the ACT. The 23 Logistics assets acquired, totaling 161,700 square meters of gross lettable area, are located across Australia, and are fully leased with a weighted average lease expiry (WALE) at 30 September 2021 of 9.8 years. The 6-level 10,200 square meter office asset acquired is well located in the Canberra central business district, with a WALE of 4.7 years at September 30, 2021. Approximately 70% of the acquired portfolio by income is leased to the Australian government, ASX listed, or multinational entities which is in line with GPT’s existing portfolio. Three office assets and one logistics asset from the original portfolio being marketed for sale by Ascot Capital were not acquired by GPT.
The acquisition will increase GPT’s investment portfolio weighting to the logistics sector to 26%, progressing them closer toward their medium-term target of approximately 30%.