Abacus acquires four Self Storage facilities and remaining 60% of The Oasis Centre, Broadbeach

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    Abacus Property Group (Abacus) [ASX: ABP] announces it has exchanged contracts on four additional Self
    Storage facilities and acquired and completed the purchase of the remaining 60% interest in The Oasis
    Centre, Broadbeach QLD from an affiliate of KKR1. The acquisitions will be funded by debt and proceeds
    from the recent entitlement offer.
    Self Storage acquisitions
    Abacus continues to execute on its strategy to expand its portfolio of Self Storage locations, with four
    established Self Storage facilities acquired for $44.2 million (excluding transaction costs) with settlement
    anticipated in May 2021. Three of the four were sourced via the Storage King relationship with one facility
    sourced off market, bringing the portfolio to a total of 962 locations, valued at approximately $1.3 billion.
    The newly acquired facilities are located in the Significant Urban Areas3 of Adelaide (Windsor Gardens and
    Woodville North) and Sydney (Kirrawee and Revesby) and have an aggregate occupancy of 91.5%.
    Acquisition of remaining 60% of The Oasis Centre, Broadbeach
    Total consideration for the remaining 60% of The Oasis Centre was $103.5 million (excluding transaction
    costs) and reflects a net income yield of 7.3%. The acquisition price is reflective of the current book value.
    The Oasis Centre was originally acquired by Abacus (40% interest) and KKR (60% interest) in March 2015
    for $103.5 million, with Abacus engaged to provide property management, leasing and development services
    at the asset. Since that time the asset has undergone repositioning that sees it now established with a
    diversified income stream, an occupancy of 96% and a weighted average lease expiry of 5.2 years.
    Terms were agreed with KKR to acquire their interest in the asset and reflect the progress that has been
    made at the asset over the last six years. Full control of the asset will allow Abacus to pursue future
    opportunities and to continue to reposition the asset towards office, health and beauty services and other
    uses, with The Oasis Centre becoming acknowledged as the commercial hub of Broadbeach.
    1 KKR Oasis Pty Ltd
    2 Including 8 development assets 3 As defined by the Australian Bureau of Statistics
    2
    Sale of non-core assets
    Abacus also continues to execute on its planned repatriation of equity from legacy investments in non-core
    sectors, and so far in FY21 has exchanged contracts to sell six small scale Industrial and Office assets for a
    total of $63.1 million with settlements expected to occur between April 2021 and April 2022.
    Abacus Managing Director, Steven Sewell commented "Since our strategic refocus announced in 2018, we
    have successfully and efficiently transacted to pivot the Group’s balance sheet towards strong income
    producing assets, and are confident through execution of strategic asset plans, each of the assets will deliver
    long term sustainable returns for our stakeholders.”

    courtesy of Bell Direct

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    DYOR

    i hold ABP

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