Ascendas REIT Bags Upcoming Office/Retail Building In Sydney For A$167.2mil

AUSTRALIA -Bullish on the prospects of the Macquarie Park suburb in Northern Sydney, ASCENDAS Real Estate Investment Trust (ASCENDAS REIT) has agreed to purchase a 3,308 sqm freehold land there at a base purchase consideration of A$167.2 million (S$161.0 million), which already includes development cost, revealed an SGX filing released on Friday.

The development site is being divested by Winten Property Group and Frasers Property Industrial, which will design and construct a mixed-use commercial property on the land.

Dubbed as MQX4, the upcoming nine-storey building will have a net lettable area (NLA) of 19,384 sqm. This consists of 1,631 sqm of retail space on the ground floor and 17,753 sqm of office space on the upper levels, as well as 204 car park bays.

Moreover, the commercial property is anticipated to achieve a NABERS energy rating of 5.5 stars and 6 stars under the ‘Green Star – Design & As Built’ rating.

Situated along 1 Giffnock Avenue in the middle of Macquarie Park, the site is just a short stroll (100m) from Macquarie Park railway station. By 2024, when the Sydney Metro City Line starts operating, traveling from the vicinity to Sydney’s central business district (CBD) is expected to take merely 20 minutes.

Notably, Macquarie Park is Australia’s biggest metropolitan market with a total office space of about 860,000 sqm. Apart from housing the headquarters of many local and multinational companies across various industries, Macquarie University Hospital is also nearby. Macquarie University and New South Wales’s biggest suburban mall are within close proximity as well.

“We are delighted to secure our first suburban office property in Macquarie Park, Sydney’s premier innovation location, and Ascendas REIT’s fifth suburban office asset in Australia,” said William Tay, the Executive Director and CEO of ASCENDAS REIT’s manager.

“We believe that decentralization trends will continue to benefit Macquarie Park which has already attracted many leading companies who have set up their headquarters in the precinct.”

The site’s acquisition is slated to be completed by the fourth quarter of this year, and the commercial property is anticipated to be finished by the middle of 2022, with the builders agreeing to provide a post-completion rental guarantee of three years for any unleased premises.

The commercial property’s net property income (NPI) yield for the first year is initially estimated at 6.1 percent. It is also estimated to slightly increase ASCENDAS REIT’s annual distribution per unit (DPU) by 0.046 Singapore cents.

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