China SF REIT pays $81m for logistics property

China SF REIT, one of the first and only logistics-focused REITs listed in Hong Kong, has acquired a warehouse complex in Central China for RMB 540 million ($81 million). The seller was S.F. Holding Co.

The property in the Hunan provincial capital of Changsha will add 120,055 square meters (1.3 million square feet) of gross lettable area to SF REIT’s 307,655 square meters (3.3 million square feet). The complex is 98.9 percent occupied by 21 tenants.

The acquisition, which is to be financed by internal resources and debt facilities, is SF REIT’s first investment in Central China which complements its current asset portfolio covering Hong Kong, Foshan and Wuhu.

“We are pleased to enter into the acquisition agreement with SFH, which has been highly supportive to SF REIT’s development,” said Hubert Chak, executive director and CEO of SF REIT Asset Management Limited, the manager of SF REIT. “The acquisition will diversify the locations and composition of