China’s greatest courier agency has its personal Hunan super-shed
SF REIT has agreed to accumulate a warehouse advanced in central China for RMB 540 million ($81.2 million), as Hong Kong’s solely logistics-focused listed belief seeks to enlarge its three-asset portfolio and broaden its geographical footprint.
The property within the Hunan provincial capital of Changsha will add 120,055 sq. metres (1.3 million sq. ft) of gross lettable space to SF REIT’s 307,655 sq. metres of GLA. The advanced is 98.9 % occupied by 21 tenants, the belief’s supervisor mentioned Monday in a launch.
The asset is the primary to be acquired from SF REIT’s controlling unitholder, transport and logistics big SF Holding, following the belief’s itemizing in Might 2021 and joins the portfolio’s current properties in Hong Kong, Foshan and Wuhu. The acquisition, topic to unitholders’ approval at a normal assembly on 22 June, is anticipated to be accomplished this month.
“Upon completion, SF REIT will have the ability to obtain higher economies of scale ensuing from enhanced working synergies, each when it comes to satisfying tenants’ necessities in addition to sharing of asset administration sources,” mentioned Hubert Chak, government director and CEO of the supervisor.
Including a Hunan Hub
Accomplished in 2021, the Changsha property contains a ramp-up two-storey distribution centre, a three-storey warehouse with two underground ranges, two single-storey warehouses, a nine-storey workplace constructing and three ancillary buildings.
Hubert Chak of SF REIT
The agreed worth of RMB 540 million represents a 1.9 % low cost to the appraised worth of RMB 550.4 million and presents an annualised internet property yield of 6.6 %, the belief’s supervisor mentioned. The addition of the property will enlarge the full worth of SF REIT’s portfolio by 10.3 %.
SF REIT’s current property are the Asia Logistics Hub SF Centre on Tsing Yi island within the New Territories with 160,322 sq. metres of GLA, Foshan Guicheng Fengtai Industrial Park in Guangdong province (84,951 sq. metres) and Wuhu Fengtai Industrial Park in Anhui province (62,382 sq. metres).
The portfolio had a 95.8 % occupancy price, an annualised yield of seven.9 % and a weighted common lease expiry of 4.1 years on the finish of 2021.
“Going ahead, we’ll proceed to pursue yield-accretive acquisition alternatives of contemporary logistics properties which are strategically situated at transportation hubs, present good built-in infrastructures for the logistics sector and command excessive occupancy charges with SFH as an anchor tenant to safe secure returns,” Chak mentioned. “We’ll work intently with SFH to discover alternatives to additional broaden SF REIT’s asset portfolio at an accelerated tempo.”
Mainland Sheds Beckon
Shenzhen-based SF Holding owns 35 % of SF REIT’s HKEX-listed models, that are down 36 % in worth since buying and selling started in Might 2021 however rallied 2 % in Monday’s session.
The supervisor mentioned the belief’s distribution per unit would have elevated by 8.5 % on a professional forma foundation if the Changsha acquisition had been accomplished on the time of SF REIT’s creation on 29 April 2021.
SF REIT’s urge for food for mainland sheds mirrors that of Asia’s largest listed belief, Hyperlink REIT, which has inked offers in latest months so as to add the primary logistics properties to its retail-heavy portfolio.
HKEX-listed Hyperlink REIT in Might agreed to buy a portfolio of three warehouses within the Yangtze River Delta for RMB 947 million ($139.3 million), following its buy final 12 months of 75 % stakes in a pair of Guangdong distribution centres for a complete of RMB 754 million.
