Ascendas Funds Management (AFM), in its capacity as the manager of Ascendas Real Estate Investment Trust (Ascendas Reit) has announced the proposed acquisition of a portfolio of 11 logistics properties, located in the US state of Kansas City, for S$207.8 million (US$156 million) from third-party vendors ColFin 2017-11 Industrial Owner and ColFin Cobalt I-II Owner.

On a pro forma basis, the proposed acquisition will increase the proportion of Ascendas’ logistics properties to 22% (S$3.5 billion) of total investment properties of S$16.2 billion (from 21% or S$3.3 billion as at 30 September 2021).

“This acquisition marks our first entry into the US logistics market and is complementary to Ascendas Reit’s existing logistics portfolio,” says William Tay, AFM’s executive director and chief executive officer. “The strong market fundamentals driven by rising warehousing requirements for e-commerce fulfilment has led to record net absorption levels and rent growth across the country. We are confident of the growth potential of this portfolio given Kansas City’s geographically central location within the US and its well-developed transportation infrastructure. 

“We believe that there will be continuous high demand for this portfolio, which comprises 200,000 square metres of last-mile logistics space offering convenient access to the domestic market, midwestern population centres and other commercial hubs across the country.”

Ascendas Reit will, upon completion of the proposed acquisition, own 221 properties. Its total investment properties is expected to be worth approximately S$16.2 billion comprising 97 properties (S$10.0 billion ) in Singapore, 41 properties in the US (S$2.3 billion), 34 properties (S$2.1 billion) in Australia and 49 properties (S$1.8 billion) in the UK/Europe.