The property sits on a 3.33-ha freehold site with a net lettable area of 14,833 sqm.
AIMS APAC REIT (AA REIT) agreed to buy Boardriders APAC HQ in Queensland, Australia from retailer GSM Rocket Australia for $36.92m (A$38.46m), an announcement revealed.
The property is a light industrial facility situated on a 3.33-ha freehold site with a purpose-built warehouse and office building and a two-storey retail building, and a total net lettable area of 14,833 sqm.
It will be leased to GSM (Operations) for 12 years on a triple net lease basis with stipulated annual rent increments and a rent review at mid-term of the lease. The tenant will also have an option to renew the lease for another five years. The first year rental from the property is $284,520.43 (A$300,000).
AA REIT acquired the property with a headline yield of 7.8%. The estimated total cost of the acquisition to the company is approximately $39.84m (A$41.5m), which includes stamp duty payable, acquisition fee and other transaction costs.
According to AIMS APAC REIT Management’s CEO Koh Wee Lih, the proposed acquisition marks the first investment under AIMS Financial Group as the sole owner of the management entities of AA REIT since March 2019. “This investment will enable us to expand AA REIT’s footprint in a market that offers solid long-term growth,” Koh commented.
On completion of the acquisition, AA REIT will own a total of 27 industrial properties, of which 25 properties are located throughout Singapore, a property located in Gold Coast, Australia and a 49% interest in a property located in Macquarie Park, New South Wales, Australia.
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