The developed properties are in established logistics locations and were bought from a fund managed by one of the largest United States global asset management companies. The properties have a gross leasable area of 313,507m2, are 98% occupied and have a weighted average lease expiry of 3.5 years. Griffin Real Estate, which sourced the transaction, will own the other 5%.
The development pipeline consists of 24 identified development opportunities, which total gross leasable area of 1.9-million square metres. Redefine will have the right but not the obligation to acquire and develop these assets.
The developed assets being bought have an initial income yield of 7.1%, while interest rate and currency volatility has been mitigated through full hedging.
“We accessed offshore funding at competitive pricing and productively deployed a portion of recycled offshore capital, while there is no additional burden to Redefine’s resource base. Incremental distributable income will be applied towards our stated intention of phasing out non-recurring income,” said Redefine CEO Andrew Konig.