SINGAPORE - Ascendas Real Estate Investment Trust (A-Reit) is proposing to buy a logistics property in Sydney, Australia, for A$76.6 million (S$77.9 million) from Deka Australia One GmbH.

The property at 6-20 Clunies Ross Street, Pemulwuy, will be A-Reit's 10th logistics facility in Sydney and its 27th in Australia. It comprises a modern 36,220 square metre high clearance warehouse and a 2,359 sq m freestanding two-storey office/laboratory facility.

Said Mr Tan Ser Ping, executive director and chief executive officer of the trust's manager: "It is another premium quality property with characteristics similar to our earlier acquisitions in Australia, such as freehold land, long weighted average lease expiry (WALE) of 6.1 years and triple net leases."

He added: "Furthermore, current tenants in the property are two reputable government-related entities, Australia Post and New South Wales Police. Australia Post has subleased their space to an established Australian retailer, Target, which uses it as its major distribution facility."

During the quarter, A-Reit has announced the purchase of about S$1.15 billion worth of properties in Australia and S$439 million in Singapore.

A-Reit said it expected to incur estimated transaction costs of about A$5.4 million. The Proposed Acquisition is expected to generate a net property income yield of approximately 7.1 per cent pre-transaction costs and 6.6 per cent post transaction costs) in the first year.

It said the annualised pro forma financial effect of the proposed acquisition on distribution per unit would be 0.007 cents.