2002 Media Releases
Three major acquisitions for Deutsche Industrial Trust
Deutsche Industrial Trust (ASX:DIT) has today entered into contracts to acquire three properties - DB Business Park Norwest, 3 Brookhollow Avenue Baulkham Hills, NSW; DB Distribution Centre, 250 Forest Road South, Lara, Victoria; and DB Distribution Centre, 15-23 Wicker Road Gillman, South Australia. DIT will pay $86.17million in total for the properties.
“The transaction is another significant step for the Trust,” said General Manager of DIT, Ben Lehmann. “Based on the prospectus we have lodged today, net profit for the year to 31 December 2002 is forecast at $43.4 million which is an increase of 36% over the previous year. Also the Trust's market capitalisation will have increased by in excess of 30% in the same twelve months based on a unit price for the Trust of $1.62 per unit and the additional underwritten equity component ($53 million)."
The Trust will fund the acquisition of the new properties via:
- a $19.26 million underwritten Institutional Placement at a price of $1.62;
- a non-renounceable Priority Entitlement Offer to existing unitholders of 1 unit for every12 units held as at 25 November 2002 at a price of $1.62 per unit, which will be underwritten to $33.74 million; and
- additional debt funding of $39.50 million and cash of $1.3 million.
According to Mr Lehmann the acquisitions will significantly enhance the Trust’s portfolio in terms of geographic and tenant diversification.
“The acquisition will extend the Trust’s weighted average unexpired lease term from 4.0 years to 4.5 years. The properties provide the Trust with further exposure to strong rental growth over the medium to long-term via structured rental reviews."
“This transaction is consistent with our strategy. Execution of our strategy has been translated into excellent returns for the unitholders of the Trust to date. In the 12 months to 31 October 2002 the Trust has provided a total return of 25.2% against the S&P/ASX 200 Property Accumulation Index return of 10.0%, ranking the Trust second out of the 27 entities constituting the index," he added.
| DB Business Park Norwest Baulkham Hills 3 Brookhollow Ave |
DB Distribution Centre Lara 250 Forest Road South |
DB Distribution Centre Gillman 15-23 Wicker Rd | ||
| Description | A modern high technology facility | Industrial warehouse and distribution facility | Industrial warehouse and distribution facility | |
| Purchase Price (pre costs) | $36.07m | $31.65m | $18.45m | |
| Initial Yield (pre costs) | 8.52% (1) | 10.10% | 9.69% | |
| Site Area | 5.19 hectares | 24.55 hectares | 9.74 hectares | |
| Lettable Area | 13,422 square metres | 117,294 square metres | 72,115 square metres | |
| Development Land | 2.5 hectares | |||
| Occupancy | 100% | 100% | 100% | |
| Tenant | IBM Global Services Australia Limited | Elders Limited | Elders Limited | |
| Lease commencement | 18 Feb 2003 | 27 June 1997 | 27 June 1997 | |
| Lease expiry | 17 Feb 2009 | 29 June 2012 | 29 June 2012 | |
| Unexpired lease term (at date of acquisition) | 6.0 years (2) | 9.6 years | 9.6 years | |
| Options | 2 x 5 year options | 2 x 5 year options | 2 x 5 year options | |
| Current rental | $238.41/sqm | $27.51/sqm | $24.79/sqm | |
| Rental Growth | 6% increase every 2 years | CPI increase pa with minimum of 4.25% and maximum 7% pa | CPI increase pa with minimum of 4.25% and maximum 7% pa |
(1) Includes
(2) refers to new lease term only
In addition to today’s acquisitions, the Trust also announced the disposal of 128-132 Russell Street, Emu Plains, for $6.6 million.
For further information please contact:
Ben Lehmann
General Manager, DIT DB Real Estate
Tel: (02) 9249 9003 / 0414 424 420
Kristin Silva/Ainsley Gee
Corporate Communications
Tel: (02) 9249 9568 / (02) 9249 9904
About Deutsche Industrial Trust
Deutsche Industrial Trust (ASX:DIT) is the third largest listed industrial trust in Australia) and the top performing industrial trust in the industrial sub-sector for the 2001/02 financial year *. Its gross assets total approximately AUD$700 million. The Trust has investments in 37 properties across four of the country’s largest industrial markets (NSW 87%, VIC 3%; WA 3%; QLD 7%), The Trust invests in high quality industrial assets in prime and well-established locations across Australia.
*Source: UBS Warburg Industrial 200 Index