Two new properties in England are currently rented to existing tenants, namely the United Kingdom's Ministry of Home Affairs. New property in Wales is rented to new tenants, namely the UK Department of Environment, Food and Rural Affairs (DEFRA).
Yingli REIT said the acquisition is estimated to increase dividends per unit by 0.6%. It will use net funds from private placement unit proceeds and asset disposal, as well as existing available loans to make the acquisition. It will start privately allocating new units to institutions, qualified and other investors on Tuesday, and will raise at least £4 million.
According to the statement, Yingli Real Estate Holdings has signed a purchase and sale agreement with the seller Elite Phoenix Co., Ltd., with the acquisition price being 7.6% lower than the average valuation of the two independent appraisers.
Yingli UK Real Estate Trust (hereinafter referred to as Yingli REIT), listed on the main board of the SGX, asked the stock to suspend trading on Tuesday (June 10), and then announced the news. Yingli REIT's share price last reported £0.335 on Monday.
Yingli Real Estate Management CEO Liao Liangfa said that after the acquisition is completed, the trust's expanded UK real estate portfolio "will bring higher portfolio yields."
The three real estate properties acquired by Yingli Real Estate are Priory Court in Dover, England, Custom House in Felixstowe, England, and Tŷ Merli in Carmarthen, Wales. Their weighted average lease term (WALE) averages 7.4 years.
Elite UK REIT signed a contract to acquire three permanent titles or nearly permanent title properties in the UK for £9.2 million (about S$16 million) to strengthen its anti-cyclical asset portfolio.
He also said: "Tenant and geographical portfolio will also be further diversified, and the portfolio will be stronger and more resilient. The transaction is also in line with the management company's commitment to continuously reduce the portfolio debt ratio and conduct value-added acquisitions to enhance the value of unit holders."