Singapore-listed real estate investment trust CapitaLand Integrated Commercial Trust (CICT) has agreed to acquire a 50% interest in an integrated development located in Sydney for A$422 million ($305.4 million), per an announcement.
It added that the total acquisition outlay was A$454.4 million, comprising A$422 million purchase price, other expenses of A$28.2 million, and acquisition fees of A$4.2 million.
The property — 101–103 Miller Street and Greenwood Plaza — has a yield of 4.9%, based on its annualised H1 2021 net property income (NPI) and a passing NPI yield of 5.6%, the trust said.
“It will be funded by a combination of debt, divestment proceeds, and remaining proceeds of about S$95.9 million from the private placement [of 50% interest in Singapore-based One George Street] closed on Dec. 8, 2021,” said CICT.
The transaction is expected to be completed in the first quarter of next year.
Greenwood Plaza is the retail component of the integrated development. Meanwhile, a 28-storey office building within the complex has tenants from the government, financial services, and insurance sectors.
The property is set to benefit from the urban renewal plans to rejuvenate North Sydney, according to CICT.
CICT also recently agreed to acquire 66 Goulburn Street and 100 Arthur Street in Sydney, bringing its total investment into the city to A$1.1 billion. This accounts for approximately 5% of CICT’s pro forma portfolio property value.
Following the completion of the Sydney asset acquisitions, “CICT’s aggregate overseas portfolio exposure in Sydney, Australia, and Frankfurt will stand at approximately 9%, well within our guidance of an overseas exposure to be no more than 20%,” said Tony Tan, CEO of CapitaLand Integrated Commercial Trust Management Limited, the sponsor of CICT.
“CICT’s Singapore assets account for approximately 91% of its total portfolio property value. Given CICT’s predominant focus on Singapore, we will continue to seek growth opportunities within this home market,” he added.