ARA Logos Logistics Trust Management is spending a total of S$404.4 million ($297 million) to acquire five logistics properties in Brisbane Australia and invest in two funds managed by its sponsor, Logos Property Group, according to an announcement.
The deal marks ARA Logos’ first acquisition after ARA moved to take control of Logos Property and rebranding in April this year. The two-part deal is one of the major goals of the acquisition.
ARA Logos will acquire five logistics properties located in Brisbane, including a development asset, which will have an approximate purchase consideration of S$225.9 million ($166 million).
The firm also plans to take a 49.5 per cent stake in New LAIVS Trust and a 40 per cent interest in Oxford Property Fund for a total of S$178.5 million ($131 million). The pair of Logos funds together own a set of five logistics properties in Australia’s New South Wales and Victoria states.
“This is a transformational acquisition for ARA Logos as it expands our footprint across key economic hubs in the East Coast of Australia and paves the way for our next chapter of growth under LOGOS’ sponsorship,” said Karen Lee, chief executive officer of ARA Logos Logistics Trust Management.
The proposed acquisition and fund investment will increase ARA Logos’ deposited property value by 28.2 per cent to S$1.7 billion on a pro forma basis as of June 30, 2020 from about S$1.3 billion.
The proposed deals also comprise high-quality and prime logistics properties strategically located on freehold land or long-dated ground leases.
They are also embedded in the heart of industrial hubs across the eastern seaboard cities of Brisbane, Sydney and Melbourne, near highways, central business districts, airports and/or seaports, according to the announcement.
The Australian industrial and logistics market, especially the eastern seaboard cities, continues to be highly sought after by investors due to its strong market fundamentals, limited supply and favourable demographics, ARA Logos said.
In March, Singapore’s ARA Asset Management acquired a majority stake in the Australia-headquartered logistics property group LOGOS Group. The transaction, which has been routed through ARA Logistics Partners, paved the way for MIRA Real Estate, a part of Australia’s Macquarie Group, to exit its investment in LOGOS.
With the acquisition, LOGOS now operates as ARA’s exclusive platform for logistics assets globally.