OUE REIT has made its first foray into the Sydney central business district with the acquisition of a 19.9% interest in the freehold Salesforce Tower for AUD357.2 million (approximately SGD319.8 million).
The move marks the start of what the REIT describes as “Phase 3” of its value creation journey and is expected to enhance its distribution per unit by 0.9% on a pro forma basis.
After taking into account the debt and other net assets tied to the investment, the purchase consideration amounts to AUD195.5 million (SGD175.0 million).
The acquisition is expected to deliver an initial passing yield of about 5.8%.
OUE REIT’s total exposure to Singapore will remain high at 94.9% following the deal.
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