Singapore-listed OUE Real Estate Investment Trust (OUE REIT) has acquired an additional 50% stake in Salesforce Tower on the east coast of Australia for A$864m (€541m) from Ping An Real Estate.
OUE REIT, which initially secured a 19.9% interest in the prime Circular Quay office asset in Sydney from Mitsubishi Estate Asia for A$357.2m in March, exercised its pre-emptive rights to execute the transaction.
The trust will finance the acquisition cost through a combination of debt financing and proceeds from the divestment of Crowne Plaza Changi Airport.
Ping An and Mitsubishi were seed investors alongside Lendlease in the 180 George Street development prior to construction in 2019.
Lendlease retains a 20% stake via its unlisted commercial trust, while Japanese group Odakyu Electric Railway holds the remaining interest through Odakyu Australia.
Han Khim Siew, CEO of the manager of OUE REIT, said: “Establishing a majority interest in 180 George Street will strengthen OUE REIT’s control over key property-related decisions and provide greater flexibility to pursue proactive asset management, execute value-add asset enhancement initiatives and strengthen overall portfolio quality.”
He said: “Australia offers a stable economic outlook, supported by strong capital investment flows, abundant mineral and energy resources, and resilient demand drivers. We remain confident in Sydney’s long-term fundamentals, underpinned by a resilient economy, growing knowledge-based industries and sustained demand for premium workplace environments.”
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