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Suntec REIT has completed the A$297.0 million (S$280.9 million) acquisition for the freehold property in Australia.
Suntec Real Estate Investment Trust (Suntec REIT), via its wholly-owned sub-trust Suntec REIT 21 Trust, has agreed to acquire a 100 percent interest in the freehold Grade A office building at Pyrmont, Sydney for A$297.0 million (S$280.9 million).
Currently under development, 21 Street Harris is designed to be a campus style, nine-storey Grade A office building with ancillary childcare, café, basement carpark, gymnasium and end-of-trip facility.
The building has a net lettable area (NLA) of around 203,400 sq ft, of which 21,500 sq ft is for retail space and 181,900 sq ft for office space.
With nine months to go before practical completion, the freehold property has so far achieved a pre-committed occupancy rate of 91.2 percent. It will be anchored by global communications and marketing firm Publicis Groupe, as their Sydney headquarters. The remaining pre-committed spaces was leased to Campfire, an international co-working operator as well as a gym and childcare centre operator.
In an SGX filing, the REIT’s manager revealed that the property’s development will “continue to be undertaken by the vendor, Milligan Group, a residential and commercial space developer and the acquisition is expected to be completed in Q1 2020 when the property achieves practical completion”.
“The accretive acquisition will improve earnings and distributions to unitholders with an initial net property income yield of 5.5 percent upon practical completion. Unitholders will enjoy income stability with growth through the long lease terms and annual rental escalations,” said Chong Kee Hiong, CEO of ARA Trust Management.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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