Starhill Global REIT property in Singapore, Ngee Ann City. (Photo: REITsWeek)Starhill Global REIT property in Singapore, Ngee Ann City. (Photo: REITsWeek)

Singapore-listed Starhill Global REIT’s (SGX:P40U) bid to acquire Myer Centre Adelaide for AUD288 million (USD304 million) has been approved by the Australian Foreign Investment Review Board.

The retail and office REIT has also entered into an AUD145 million three-year secured term loan facility and a SGD250 million three-year unsecured term loan facility to fund the purchase of Myer Centre Adelaide and for refinancing of an existing S$100 million loan facility maturing in September 2016.

Following the completion and the refinancing, the gearing of Starhill Global REIT is expected to increase from 28.7% to approximately 35.3%, the REIT said.

Completion of the acquisition is expected to take place by May 2015. Units of Starhill Global REIT are currently listed on the Singapore Exchange at SGD0.86.

Starhill Global REIT property in Singapore Ngee Ann City
Starhill Global REIT property in Singapore Ngee Ann City

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.