AREIT has announced its maiden acquisition in Australia for A$1.0b, which translates to NPI yield of 6-6.4% and DPU accretion of 3-3.5%. We believe the market will not be overly surprised with this transaction, as it has been well-flagged by management and various Australia media outlets over the past 1 month. While forex risk is inadvertent, we find comfort in AREIT's strategy to hedge cash flow, coupled with any further AUD weakness (which we find unlikely based on our Forex Team's forecast of a 6% appreciation in AUD vs. SGD by 1H16) to be mitigated by the annual rental escalation. We expect AREIT to further expand its overseas footprint given subdued growth prospects in Singapore and latest 14% overseas exposure still below the targeted 20-30%. Maintain OW.