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Suntec REIT will be acquiring the entire stake in a 12-storey, Grade A office building in Adelaide, South Australia for A$148.3 million (S$141.4 million).
Suntec Real Estate Investment Trust (Suntec REIT), via its fully-owned sub-trust Suntec REIT 55 Trust, is acquiring the entire stake in a freehold Grade A office building in Adelaide, South Australia for A$148.3 million (S$141.4 million).
With a net lettable area of around 282,000 sq ft, the 12-storey building at 55 Curie Street has been refurbished several times. Its recent asset enhancement exercise, which was completed last year, includes major mechanical and electrical plant and equipment upgrades for its chillers, lift system and building management system.
The property was also installed with solar panels as well as end-of-trip facilities on top of upgrades for its lift lobbies, central atrium and toilets.
It has a committed occupancy rate of 91.6 percent, with key tenants including Data Action, Allianz, South Australian Government and the Commonwealth Government.
Meanwhile, the vendors has committed that they would give a 27-month rent guarantee for the vacant spaces.
“We are pleased to expand our footprint in Australia with the acquisition of 55 Currie Street, a Grade A office building situated in the heart of Adelaide’s central business district,” said Chong Kee Hiong, CEO of the trust’s manager.
“Underpinned by a strong cashflow of high quality office tenants, the initial net property income yield of eight percent will provide immediate DPU accretion upon completion of the acquisition by end August 2019. Unitholders will also enjoy income stability with growth through the annual rental escalations of between 3.50 percent to 3.75 percent.”
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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