World View
Geographical breakdown of the abrdn Global Real Estate Fund's assets across the globe.
Melbourne
1651-1657 Centre Road, Springvale
- Purchased this well located Melbourne logistics unit in August 2018 at a net initial yield of 6.0%.
- Melbourne logistics were towards the top of the Asia Pacific House View at the time of purchase due to our rental growth forecasts and continued demand for the logistics sector in general.
- Asset is situated in a good location which will improve further due a number of imminent infrastructure projects.
- Constructed in the 1990s however the spec remains suitable for a number of uses (distribution, e-commerce, final mile delivery).
Melbourne
432 St Kilda Rd
- Purchased this newly refurbished modern office building on St Kilda Road, south of Melbourne, in January 2015 at a net initial yield of 7.9%.
- Melbourne offices were towards the top of the Asia Pacific House View at the time of purchase due to our rental growth forecasts for the sector and continued demand from domestic and overseas investors.
- The majority of leases were subject to fixed annual uplifts of between 3.5-4.5% at the time of purchase which is normal practice in Australia.
- Asset bought with 100% occupancy, strong rental growth forecasts as vacancy rate continues to fall in St Kilda Road market given its excellent transport links to the central business district.
Sydney
3-5 John Morphett Place, Erskine Park
- Purchased this 9,000 sqm industrial asset within Erskine Park, one of Sydney's established industrial locations, in November 2018 for c£10m.
- The passing rent was significantly below the market level on acquisition ensuring the asset has strong revisionary potential.
- The tenant’s lease expiry is in 2021, but having invested heavily in the unit there is a high likelihood that they will exercise their prolongation option and remain in situ for a further 5 years.
Sydney
11 Amour Street, Milperra
- Purchased this logistics asset in Sydney, Australia in December 2019 for A$31.9m reflecting at a net initial yield of 4.7%
- Located 24kms to the south-west of Sydney city centre in an area of high population density and in close proximity to Sydney’s major orbital road network
- Constructed in the 1980s however the spec remains suitable for a number of uses and can be easily subdivided
- At the time of purchase, the Australian industrial/logistics sector was expected by the ASI Real Estate Research team to continue to outperform
Munich
Niu Hotel
- Purchased this hotel asset in Munich, Germany in December 2019 for €25.2m reflecting at a net initial yield of 4.3%
- Munich is a buoyant hotel market with the highest occupancy rates and revenues per room rates in Germany
- Located close to the Munich exhibition centre (a world leading international trade fair facility)
- The asset provides CPI linked long dated income with an unexpired term of 20 years+ therefore helping to extend the WAULT of the Fund
- This was the Fund’s first direct acquisition in the favoured alternatives market
Dublin
3&5 Custom house Plaza
- Purchased two adjoining office buildings (c.60k sq ft in total) in the International Financial Services Centre in Dublin in January 2015.
- Dublin offices sat at the top of our House View at time of acquisition given the strong recovery forecast for this part of the market.
- The offices are in a strong core location in one of Dublin’s main business districts and benefit from excellent transportation links around the city.
- Latent value within the property given that it was purchased with two vacant floors which we were confident of filling given the vacancy rate for Grade A offices in Dublin was around 1.9% on acquisition.
St Helier
44 Esplanade
- The Fund acquired this Grade A office building in January 2015.
- The property is a single-let modern headquarters office building totalling approximately 76k sq ft and occupies a prime location on the Esplanade in St Helier.
- The building was fully let at the time of purchase on a lease until 2033. The unexpired lease term to the first break was 7.5 years, with upward only rent reviews every three years.
- The acquisition price reflected a net initial yield of 7.5%, significantly above the yields on offer from buildings of similar specifications in the UK office market at that time.
Veghel
DC Goossens
- The Fund purchased this modern, well-specified logistics unit in Veghel, the Netherlands in an off-market transaction for €29.5m in October 2017.
- The purchase price reflected a net initial yield of 5.93%.
- The purchase provided the Fund’s first direct exposure to the logistics sector, a sector which was rated as ‘Very Heavy’ in our Real Estate Research team’s House View at the time of purchase.
- The asset was fully let at the time of purchase on a triple net lease to a sound covenant with 11.5 years unexpired term at a rent of €1.9m per annum.
Gniezno
Galeria Gniezno
- The Fund acquired this modern shopping centre in June 2013 reflecting a net initial yield of 8.1%.
- The property has 49 retail and restaurant units and is anchored by a handful of dominant international tenants.
- Significant asset management initiatives undertaken since acquisition including renewal of anchor tenants leases, replacement of local tenants with strong operators and market leaders.
- The renegotiation of more than 30 leases since 2013 meant the asset was fully let as of 28th February 2017.
Site 1 and 2 Myslowice
- A surplus residual land plot that was associated with a logistics asset sold by the Fund in 2013.
Singapore
48-56 Peck Seah Street
- Purchased this mixed use office and retail asset in Singapore in January 2020 for S$55.3m reflecting at a net initial yield of 3.5%
- The asset is located within the core CBD next to Tanjong Pagar train station with a 33m wide main road frontage
- The asset is classed as a conservation shophouse and boasts attractive larger floor plates and limited new supply in the pipeline
- The precinct is specifically targeted by URA’s plan to increase the CBD's live-in population; the Showroom / F&B components will benefit from the following increase in footfall
- At the time of purchase, the Singapore office sector was expected by the ASI Research team to continue to outperform given tight vacancy, stock withdrawal and low new supply
Barcelona
WTC Almeda Park Building 4
- The Fund purchased this modern Grade A multi-let office asset in April 2015 producing a net equivalent yield of 6.45%.
- The property is situated in the World Trade Centre Park between the airport and city centre and benefits from excellent transportation links by rail, bus or road.
- The Barcelona office market sat towards the top of our European Non-Core House View at the time of purchase given that we forecasted further yield compression and strong rental growth for this part of the market.
- There were also asset management opportunities available on acquisition given that the property had around 15% vacant space and a weighted average unexpired lease term of around 4.5 years.
Tokyo
Nishi-Shinbashi
- Acquired this high quality Grade A multi-let office asset in an off-market transaction in June 2014.
- Accessed this opportunity through our strategic relationship with Sumitomo Mitsui Trust Bank, a leading commercial real estate broker in Japan.
- Prime location within walking distance of the main central business district in Marunouchi, the asset also benefits from excellent accessibility to rail and subway networks.
- The purchase reflected a net initial yield of 3.25% and a net reversionary yield of 4.72%.
- Tokyo offices were at the top of the Asia Pacific House View at the time of purchase due to our belief that the market could see further inward yield movement as well as strong rental growth over the coming years.