SPH Reit to acquire 85% stake in Australian shopping centre for $124.5m

People walk through the Barangaroo area in the central business district of Sydney, Australia, on Monday, Jan. 23, 2017. Photographer: Dallas Kilponen/Bloomberg

Singapore-based real estate investment trust SPH Reit Management plans to acquire an 85 per cent stake in a shopping centre south of Sydney for $124.5 million (A$175.1 million).

According to an official statement, this is SPH Reit’s first investment overseas and will be financed through a combination of debt and internal sources.

Figtree Grove Shopping Centre is located about 3.7 km southwest of the Wollongong and 71 km southwest of Sydney. It occupies a total gross lettable area of 21,984 sqm, including facilities like a 24-hour Kmart, supermarkets, retailers and dining options. It sits on a freehold land area of 50,900 sqm.

The proposed acquisition will be made through Figtree Holding Trust, a wholly owned sub-trust of a joint venture between SPH Reit and entities managed by Moelis Australia, an ASX-listed financial services group.

The property is priced at $146.4 million (A$206 million).

“The acquisition of Figtree Grove Shopping Centre is a strategic fit with SPH REIT’s portfolio of quality assets and in-line with our strategy to expand our footprint into Australia. With a WALE of 5.4 years by income and built-in rental escalations, the acquisition will provide stable and growing income to our unitholders,” said SPH REIT chief executive Susan Leng.

“The partnership with SPH REIT fits perfectly with our strategy of working with respected and strong offshore investment groups to acquire fundamentally sound investment grade assets with upside potential in the Australian marketplace. SPH REIT’s investment requirements aligned well with our strategy of identifying and acquiring strong performing Australian shopping centres with sound trade area demographics and good growth prospects,” said Chris Monaghan, Managing Director and Head of Real Estate Asset Management at Moelis Australia.

SPH REIT primarily invests in real estate used for retail purposes. Its portfolio includes Paragon, The Clementi Mall and The Rail Mall with an aggregate net lettable area of approximately 960,000 sq ft.

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. 
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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.