AA REIT to buy Perth freehold industrial site for $38.43m

This adds a fully leased freehold asset with a 10-year lease and two renewal options.

AIMS APAC REIT (AA REIT) will acquire a 9.15-hectare freehold industrial property in Hazelmere, Western Australia, for $38.43m (AU$42.7m), expanding its Australian industrial portfolio and increasing its exposure to freehold assets.

The company said in a bourse filing that the acquisition covers a property comprising two adjoining freehold land parcels at 398 Bushmead Road and 286 Stirling Crescent.

The purchase consideration matches an independent valuation by Colliers International Holdings (Australia). Total acquisition outlay is estimated at $39.87m (AU$44.3m), including acquisition fees, stamp duty, and other transaction costs, partly offset by a vendor adjustment.

The property is fully leased to Swan Materials Pty Ltd under a 10-year triple-net lease that commenced on 1 October 2025, with annual rental escalation of 3.25% and two 10-year renewal options.

The manager said the acquisition reflects a first-year net property income yield of 5.3% and is expected to increase distribution per unit (DPU) by around 0.3% based on 100% debt funding.

The acquisition is expected to deliver average DPU accretion of about 0.6% over 10 years. Completion is expected in the second quarter of financial year 2027.

"The proposed acquisition of 398 Bushmead Road and 286 Stirling Crescent represents a strategic addition to AA REIT's portfolio whilst reinforcing our focus on acquiring land-rich, income-producing industrial assets," said Russell Ng, CEO of AA REIT.

The site also offers redevelopment potential because of its location within Perth's eastern logistics and industrial corridor and its proximity to the Guildford Terminal Substation, a 550-megavolt-ampere power substation.

“This proximity to major power infrastructure may support future data centre or other power-intensive industrial uses over the long term, subject to planning, technical feasibility and approvals,” the REIT said in the filing.

(AU$1.00 = SG$0.90)

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