ESR Kisosaki comprises a land area of 79,096 sq m, with a weighted average lease expiry (WALE) of 2.71 years as of June 30. The property was completed on April 28, 2022 and has one of the highest sustainability ratings in Japan. Its committed occupancy is 89.4%.
ESR-LOGOS REIT (E-LOG) announced the proposed acquisition of 100% of ESR Yatomi Kisosaki Distribution Centre, Nagoya, Japan, for JPY38 billion ($338 million) and 51% of 20 Tuas South Avenue 14 (20TSA). The agreed value for (100%) of 20TSA based on a net property income yield of 6.1% is $840 million.
Both properties are being acquired at a 2.3% discount to the valuation. For ESR Kisosaki, the acquisition price is also 5.9% below the valuation of comparable properties in Nagoya. The total acquisition cost is approximately $772.6 million and the acquisitions are expected to be +1.8% DPU accretive.
