ARA LOGOS Logistics Trust to sell South Australian warehouse for $41.5m

Singapore-listed ARA LOGOS Logistics Trust has announced that it is divesting a warehouse property in South Australia for a proposed sale consideration of $41.5 million.

ARA LOGOS Logistics Trust Management Limited, the manager of ARA LOGOS Logistics Trust (ALOG), had entered on 25 April into a sale and purchase agreement with 1835 Capital Pty Ltd for the sale of the property located in 404-450 Findon Road, Kidman Park, South Australia.

Completed in 1964 and added to ALOG’s portfolio in 2015, the property is freehold and includes a cold store warehouse space with ancillary offices.

The proposed divestment is set to help the company build a more resilient portfolio. ALOG has selectively divested lower-performing properties with limited growth potential over the last few years, with the most recent being ALOG Changi DistriCentre 2 in Singapore.

ALOG Manager Chief Executive Officer Karen Lee commented that the proposed investment is in line with ALOG’s strategy to proactively rebalance the portfolio to optimise returns for its unitholders.

“With this sale, it will provide us with the financial flexibility to recycle capital and invest in other value-adding properties,” Lee said.

“We may also utilise the proceeds to pare down debt which will improve ALOG’s debt headroom for potential acquisitions of quality assets or strategic opportunities to unlock further value for the existing portfolio,” she said.

The proposed sale consideration is approximately 3.8% above the $40.0 million valuation conducted by CBRE.

It is expected to complete by 1H 2021.

Source: ARA