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Soilbuild Business Space REIT (Soilbuild REIT) announced on Friday (5 Oct) that it has completed its maiden acquisitions of two commercial properties in Australia for a total of AU$120.96 million (S$120.96 million).
These comprise an eight-storey office building at 14 Mort Street in Canberra’s central business district (CBD) and a poultry processing facility at Port Wakefield Road 20km north of Adelaide’s CBD, which were purchased for AU$55.00 million and AU$61.25 million respectively.
Both properties are fully occupied. 14 Mort Street’s lettable area of 9,383.5 sq m is tenanted by the Australian government. It has a weighted average lease expiry (WALE) by income of 6.5 years, with rental escalation of 3.75 percent per annum. Net property income yield is estimated at 5.9 percent, taking into account acquisition costs.
On the other hand, the poultry plant’s lettable area of 21,424.0 sq m is occupied by Inghams Group, the largest vertically integrated poultry producer across Australia and New Zealand.
It has a weighted average lease expiry (WALE) by income of 16.1 years, with rental escalation benchmarked to Australia’s consumer price index but capped at 2.5 percent for some stipulated years. Net property income yield is estimated at 6.42 percent, taking into account acquisition costs.
The purchase consideration of the two commercial properties was funded by a combination of debt denominated in Australian dollars and via the issuance of perpetual securities.
Upon completion of the transactions, Soilbuild REIT will own 11 properties in Singapore and two in Australia.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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