Offered with a 30-year lease to Arnott’s, the deal lifts a key metric of the CIP portfolio, the weighted average lease expiry, to 7.2 years from 4.4 years.
The smaller 23,593-square-metre Adelaide factory in the suburb of Marleston was acquired for $24.4 million on an initial yield of 7.4 per cent with a 12-year lease.
KKR put the portfolio, including its key factory in Sydney, up for sale in September after buying Arnott’s for $3.2 billion in August. UBS and CBRE were appointed to steer the campaign.
The Financial Review’s Street Talk column revealed on Wednesday that the Charter Hall Long WALE REIT was poised to snap up the last asset, the 63,000-square-metre Sydney factory in Huntingwood near Blacktown.
The acquisition will be funded via an institutional placement with industry sources saying a price below an initial circa $500 million asking price was close to being finalised.
CIP reaffirmed its previous guidance of 19.6¢ to 19.9¢ per unit and a distribution of 18.7¢ per unit.
It also announced that nine properties in its existing 46-property-strong portfolio had been independently revalued as of December 31 resulting in a $19 million or 9.5 per cent increase on prior valuations.
As a result of these revaluations, the portfolio’s weight average capitalisation rate firmed six basis points to 6.41 per cent prior to the acquisitions.
