Suntec REIT property in Melbourne comes online

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Suntec REIT’s office development at 477 Collins Street, Olderfleet, received practical completion on 31 July 2020.

Suntec REIT co-owns the development with Mirvac, a leading Australian property group.

“With income commencement on 1 August 2020, the development will further enhance Suntec REIT’s income and improve its earnings and distributions to unitholders with the long weighted average lease expiry (WALE) of approximately 11 years and annual rental escalations of between 3.5% to 4.0%”, said Chong Kee Hiong, CEO of the REIT’s manager.

The property features a net lettable area of 58,000 square metres (sqm) which comprises 56,000 sqm of office space and 2,000 sqm of retail space.

The property has achieved a pre-commitment of 97.0% with additional 0.2% with heads of agreement signed.

Anchor tenant, Deloitte, is taking 29,000 sqm of space over 15 floors and other leading organisations occupying the building includes Norton Rose Fulbright, Lander & Rogers, Urbis and Work Club Global.

The retail space at Olderfleet is set to complete by end-2020, and this will feature a mix of food and beverage options as well as a personal training fitness studio.

Suntec REIT was last done on the Singapore Exchange (SGX) at SGD1.32, which implies a yield of about 5% according to data compiled on the Singapore REITs table.

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