Singapore’s CapitaLand Integrated Commercial Trust (CICT) has bought its first assets in Australia, acquiring two office buildings in Sydney for A$331m (€208m) from CLA Real Estate Holdings.

The listed CICT bought units in two trusts that hold 66 Goulburn Street in central Sydney and 100 Arthur Street, in North Sydney. 

The deal marks CICT’s first foray into Australia, its second overseas developed market after Germany.

Teo Swee Lian, chairman of CapitaLand Integrated Commercial Trust Management Limited (CICTML), said: “Despite the evolving pandemic situation, this is an opportune time for CICT to enter Australia.”

She said the Sydney office market was supported by strong economic fundamentals and a recovery was expected as the country emerged from COVID-19 restrictions.

“In particular, Sydney is witnessing major development and rejuvenation initiatives in line with its government-backed ambition to become a leading innovation and technology hub in the region,” she said.

“The acquisition will allow CICT to gain a foothold in Australia, one of Asia-Pacific’s largest developed markets, and opens CICT to more opportunities to drive growth.”

Tony Tan, CEO of CICTML, said the two assets were complementary to CICT’s portfolio, and would enhance its resilience through geographical and income diversification.

The transaction is expected to be completed in the first quarter of next year. It will increase CICT’s portfolio value to S$22.4bn and raise its overseas exposure from 4% to 7%.

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