Bookmark & Share
Ascendas Real Estate Investment Trust (Ascendas Reit) has acquired from 100W Pty Ltd a city fringe office property at No.100 Wickham Street, Fortitude Valley, in Queensland Australia for AU$83.8 million (S$90 million).
With a total lettable floor area of 13,131 sq m, the freehold property features a 14-storey office building and two levels of basement carpark. It is fully occupied, with tenants including three data centre operators and the State of Queensland (Department of Health).
The leases have annual rental escalations of 3.0 percent to 4.0 percent, while the property’s weighted average lease expiry is 4.8 years as at 30 June 2017.
Ascendas Reit is set to incur an estimated total transaction cost of AU$6.1 million (S$6.5 million), which includes professional advisory fees, stamp duty and acquisition fees payable to the manager.
“With a pipeline of major infrastructure projects, such as the Cross River Rail and Queen’s Wharf development in Brisbane, we believe that this is an opportune time to expand into a CBD fringe office property,” said Chia Nam Toon, executive director and CEO of Ascendas Reit’s manager.
“No.100 Wickham Street is an attractive deal with a potential NPI yield of 7.1 percent. We are optimistic about the long term growth potential of the area, and will continue to look at other accretive investments.”
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
Related Articles:
$2.1bil Asia Square Tower 2 sale proves market recovery
Hewlett-Packard Enterprise to vacate space at Alexandra Technopark