ARA LOGOS Logistics Trust (ALOG) has divested Kidman Park in Australia at a proposed consideration of A$41.5 million ($42.6 million).
The manager of the REIT entered into a sale and purchase agreement on April 25 with 1835 Capital for the sale of the park, located at 404-450 Findon Road, South Australia.
ALOG has been divesting selected lower-performing properties with limited growth potential. It recently proposed the divestment of ALOG Changi DistriCentre 2 on April 22.
See: ALOG divests ALOG Changi DistriCentre 2 for $16.7 mil
Kidman Park is a freehold property that comprises a cold warehouse space with ancillary offices. It was completed in 1964 with periodic additions made. The property was added to ALOG’s portfolio in 2015.
The proposed sale consideration is approximately 3.8% above the A$40.0 million valuation conducted by CBRE as at Dec 31, 2020.
“This proposed divestment is in line with ALOG’s strategy to proactively rebalance the portfolio to optimise returns for our unitholders. With this sale, it will provide us with the financial flexibility to recycle capital and invest in other value-adding properties,” says Karen Lee, CEO of the manager.
“We may also utilise the proceeds to pare down debt which will improve ALOG’s debt headroom for potential acquisitions of quality assets or strategic opportunities to unlock further value for the existing portfolio,” she adds.
The sale is expected to be completed by 1HFY2021.
As at 3.31pm, units in ALOG are trading 1.5 cents higher or 2% up at 76.5 cents.
