Ascendas Real Estate Investment Trust (Ascendas REIT) has marked its entry into the US logistics real estate market with an agreement to buy 11 last-mile properties in Kansas City for S$207.8m (鈧�133m).
William Tay, executive director and CEO of the manager, said the firm was confident of the growth potential of this portfolio, 鈥済iven Kansas City鈥檚 geographically-central location within the US and its well-developed transportation infrastructure鈥�.
Tay said: 鈥淲e believe there will be continuing high demand for this portfolio, which comprises 200,000sqm of last-mile logistics space offering convenient access to the domestic market, midwestern population centres and other commercial hubs across the country.鈥�
The overall vacancy rate of the sector in Kansas has remained stable at 4.5%-5.9% since 2015. As at third quarter this year, the vacancy rate was 4.8%, according to Ascendas.
Upon completion of the acquisition, Ascendas REIT will own 221 properties valued at approximately S$16.2bn, of which logistics will increase to S$3.5bn or 22% of its total portfolio.
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