This article is from the Australian Property Journal archive
SINGAPORE’S Ascendas REIT has acquired two commercial properties in Sydney and Melbourne for $168.2 million.
The first and largest property is located at 197-201 Coward St Mascot in Sydney, which the trust has acquired from Frasers Property Australia for $143.4 million and Ascendas acquired the second asset, Stage 4 within the Power Park Estate at Dandenong South in Melbourne from Goodman for $24.8 million.
Ascedas CEO Chia Nam Toon said these acquisitions are part of the trust’s plans to progressively build on and diversify its existing portfolio in Australia.
“We will continue to seek more quality freehold properties that will help enhance Ascendas Reit’s ability to generate stable and visible cash flows to our unitholders,” Chia added.
The 197-201 Coward St Mascot comprises two eight storey A-grade office buildings with a total net lettable area of 22,628 sqm and a multi-storey carpark with 543 lots on a 6,714 sqm land area. It is 100% leased to Leighton Contractors, TNT, Avis with a WALE of 5.2 years. The total acquisition plus transaction costs is $153.4 million.
Stage 4, Power Park Estate is currently under constructions. When completed in 1Q 2017, the property will have an estimated total gross lettable area of 18,007 sqm on a site area of 33,107 sqm. It is currently 68% pre-committed and Goodman has provided rental guarantee for the vacant space. Upon completion, it will have a WALE of eight years to key tenant Bunzl Outsourcing Services. The total acquisition plus transaction costs is $25.6 million.
The initial net property income yield for 197-201 Coward St and Stage 4 Power Park Estate is approximately 6.9% and 6.7% pre-transaction costs, respectively.
Post transaction costs, both acquisitions are expected to generate net property income yield of approximately 6.5% in the first year.
Australian Property Journal
