Singapore-listed Office REIT Keppel REIT (SGX:K71U) has announced that the acquisition of a fifty per cent stake in the Mirvac (Old Treasury) Trust is now complete. The stake was acquired from Australian real estate conglomerate Mirvac Group for A$165 million in September 2012.

Keppel REIT currently has interests in several office buildings in Singapore and Australia. 

The trust has entered into a development agreement with the State of Western Australia to deliver a new office tower that will be built on the site where the old Treasury Building formerly stood.

The building, which will comprise of Grade A offices, is set to complete in 2015. It has currently 98 per cent pre-comitted tenancy by a 25-year lease to the Western Australia state government. Keppel REIT will fund 50 per cent of the development costs at an effective rate of 7 per cent.

The completion of the acquisition marks the second instance of co-investment between Mirvac Group and Keppel REIT. Previously Keppel REIT bought a 50 per cent stake in a premium office property in Sydney known as 8 Chifley Square.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.