Ascendas Reit has agreed to acquire a portfolio of seven logistics properties located across six infill industrial submarkets across Chicago, Illinois, United States for S$133.2 million (US$99 million).
The seven properties are located on freehold land and have highly functional designs. The portfolio has a total net lettable area (NLA) of 132,344 sqm.
The properties are located in infill locations across six growing industrial submarkets, namely, O’Hare, Central DuPage, South Cook County, I-88 Corridor, Southwest Cook County and I-39 Corridor.
The portfolio is 100% occupied by 12 customers with a weighted average lease to expiry (WALE) of 5.0 years as at 31 March 2022. These customers come from a diverse range of industries such as logistics and supply chain management, distributors, engineering and food & beverage.
On average, the existing customers have occupied their current space for 10.6 years.
”No single customer contributes to more than 20% of the total rental income of the portfolio (as at 31 March 2022), thus minimising tenant concentration risk. The current leases have built-in annual rent escalations ranging between 2.0% and 3.0% per annum,” said the company.
The proposed acquisition will be funded by Ascendas Reit through internal resources and/or existing debt facilities.
The completion of the proposed acquisition is subject to closing conditions and is expected to take place in 2Q 2022.
William Tay, Executive Director and Chief Executive Officer of the Manager said, “Following our successful entry into the USA logistics market in November 2021, we are pleased to acquire another portfolio comprising seven logistics properties in Chicago, the largest industrial market in the country based on existing space. This portfolio comes with a long weighted average lease expiry of 5 years and is 100% occupied by 12 tenants from a diverse range of industries including logistics service providers, engineering companies and a food distributor.”