AIMS AMP Capital Industrial REIT

AIMS AMP Capital Industrial REIT: Proposed its first acquisition in Australia, after entering a MOA with Australia's managed fund, Stockland, to acquire a 49% interest in the Optus Centre for A$184.4m (S$215m), to be fully funded by debt. The premium business park located at Macquarie Park in Sydney’s north is currently 100% leased to Optus Administration Pty Limited, a wholly owned subsidiary of SingTel Optus, with a long weighted average lease term of 8.62 years and fixed annual escalation of 3%. On a pro forma basis as at 30 Sep 2013, the acquisition will raise DPU by 5.7%, while NPI will increase to 6.6% from 6.3%. 60% of the debt will be from a new five year AUD term loan facility, providing a substantial natural currency hedge, while the remaining will be from an existing dual currency SGD/AUD revolving credit facility. Weight average debt maturity will improve from 2.8 years to 3.4 years post-acquisition. At $1.525, AIMS AMP trades at 6.9% 1HFY14 annualized yield .