The manager of ESR-LOGOS REIT J91U (E-LOG) has entered into a contract of sale to divest its property at 182-198 Maidstone Street for a sale consideration of A$65.5 million ($57.7 million).
The sale consideration represents a 7.4% premium to the property’s valuation of A$61.0 million as at Dec 31, 2023.
The property is a logistics facility that’s located in Altona within Australia’s state of Victoria. It sits on freehold land and has a net lettable area (NLA) of 34,862 sqm. It is held under a master lease under the REIT.
The divestment is not expected to have a material impact on E-LOG’s net asset value (NAV) and distribution per unit (DPU) for the FY2024 ending Dec 31. The net proceeds will be used to repay outstanding borrowings, finance potential acquisitions, asset enhancements initiatives and redevelopments and, or fund general working capital requirements, says the REIT manager.
Units in E-LOG closed at 30 cents on April 9.
