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Ascendas Real Estate Investment Trust (Ascendas Reit) has completed the acquisition of a six-storey office building at Fortitude Valley in Queensland, Australia for A$106.2 million (S$109 million), revealed an SGX filing on Friday (22 December).
Located at No. 108 Wickham Street, the freehold property represents the trust’s third suburban office in the country. It comes with 141 carpark lots and has a leasable floor area of 11,913 sq m. The premises are fully occupied, with major tenants such as the State of Queensland’s Department of Health and ARUP, a multinational professional services company.
The leases have annual rental escalations ranging from three percent to four percent, with a weighted average lease expiry of 6.7 years as of 30 September 2017.
The estimated net property income yield respectively amounts to 6.5 percent and 6.1 percent, taking into account pre-transaction and post-transaction costs. The acquisition was financed by internal resources and/or existing loans.
Meanwhile, Ascendas Reit has agreed to sell an industrial property in No. 84 Genting Lane, Singapore to Axxel Marketing Pte Ltd for S$16.68 million.
The proposed sale price is 66.8 percent higher than the original purchase price of S$10 million and is slightly higher than Knight Frank’s valuation of S$15.8 million as at 31 March 2017.
Situated in the established industrial estate bounded by Aljunied Road, Jalan Kolam Ayer and MacPherson Road, the property has a remaining land lease of about 22 years. It has a gross floor area of 11,917 sq m and 90.1 percent of its premises are occupied as of 30 September 2017.
The transaction has been approved by JTC Corporation and is expected to result in net proceeds of S$15.3 million upon completion by Q1 2018.
Upon completion of both deals, Ascendas Reit will have 31 and 100 properties in Australia and Singapore, respectively. Its Aussie assets will also increase by eight percent to S$1.6 billion and will make up 16 percent of the trust’s portfolio by asset value.
View of St Patricks Catholic Church in Fortitude Valley with the Brisbane CBD in the background (Photo: Wikimedia Commons)
This article was edited by Keshia Faculin.
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