ARA LOGOS Makes Australian Acquisitions, Capital Increase

News about ARA LOGOS Logistics Trust

ARA LOGOS Logistics Trust (formerly know as Cache Logistics Trust) is announcing a large acquisition along with a capital increase effort.

Assets

The purchased assets are:

  • 5 logistics properties around Brisbane, Queensland. Four are leasehold (and almost fully tenanted) and one is freehold (and vacant).
  • A 49.5% stake in New LAIVS Fund, which owns 4 logistics properties (one leasehold, the rest freehold). Two are located around Sydney and two around Melbourne.
  • A 40% stake in OP Fund, which owns a freehold cold storage property around Melbourne.

The transaction includes a pre-emptive right over balance stakes in both New LAIVS Fund and OP Fund.

Financing

The $404.4 million operation (which will need approval by vote at an EGM) will be financed by bank debt along with both a private placement and a non-renounceable preferential offering of new units to existing unit holders.

Expectations

After the operation and based on pro-forma comparison with the first semester of 2020, the trust expects a slight decrease of DPU and NAV, with an increase in gearing from 40.4% to 42.9%. Average portfolio WALE (based on NLA) will however be extended from 2.8 to 4.6 years.

ARA LOGOS Logistics Trust
Price0.625 SGD
NAV0.580 SGD
Yield (4 quarters)8.26%
Gearing40.5%