CapitaLand’s REIT to buy 50% in Sydney property for $305m

Singapore-listed real estate investment trust CapitaLand Integrated Commercial Trust (CICT) has agreed to acquire a 50% interest in an integrated development located in Sydney for A$422 million ($305.4 million), per an announcement.

It added that the total acquisition outlay was A$454.4 million, comprising A$422 million purchase price, other expenses of A$28.2 million, and acquisition fees of A$4.2 million.

The property — 101–103 Miller Street and Greenwood Plaza — has a yield of 4.9%, based on its annualised H1 2021 net property income (NPI) and a passing NPI yield of 5.6%, the trust said.

“It will be funded by a combination of debt, divestment proceeds, and remaining proceeds of about S$95.9 million from the private placement [of 50% interest in Singapore-based One George Street] closed on Dec. 8, 2021,” said CICT.

The transaction is expected to be completed in the first quarter of next year.

Greenwood Plaza is the retail component of the integrated development. Meanwhile, a 28-storey office building within the complex has tenants from the government, financial services, and insurance sectors.

The property is set to benefit from the urban renewal plans to rejuvenate North Sydney, according to CICT.

CICT also recently agreed to acquire 66 Goulburn Street and 100 Arthur Street in Sydney, bringing its total investment into the city to A$1.1 billion. This accounts for approximately 5% of CICT’s pro forma portfolio property value.

Following the completion of the Sydney asset acquisitions, “CICT’s aggregate overseas portfolio exposure in Sydney, Australia, and Frankfurt will stand at approximately 9%, well within our guidance of an overseas exposure to be no more than 20%,” said Tony Tan, CEO of CapitaLand Integrated Commercial Trust Management Limited, the sponsor of CICT.

“CICT’s Singapore assets account for approximately 91% of its total portfolio property value. Given CICT’s predominant focus on Singapore, we will continue to seek growth opportunities within this home market,” he added.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.