Keppel REIT To Buy Sydney Office Bldg

Keppel REIT To Buy Sydney Office Bldg For A$327.7mil

AUSTRALIA – Singapore-listed Keppel REIT has signed a deal today to purchase a freehold site in North Sydney that is currently being developed into a Grade A office building with an overall net lettable area (NLA) of about 14,000 sq m, according to a local bourse (SGX) filing published on Tuesday morning (30 November, SGT).

In particular, the trust acquired the site from vendors – Pyrmont Union Street Landowner Pty Ltd, William Street Home Units Pty Limited, 4 Blue Street Home Units Pty Limited, and Conway Home Units Pty Limited – for A$150.0 million (S$147.5 million).

Keppel REIT also inked a development agreement with Lendlease Development Pty Limited to develop the land into a Grade A office building to be called “Blue & William”. In total, the consideration amounts to A$327.7 million (S$322.2 million).

Located at the prime intersection of 2-4 Blue Street and 1-5 William Street, the site is just a short walk from the North Sydney Train Station. With the future Victoria Cross Metro Station, which will be located just 350 metres from the property upon completion, commuting time to Barangaroo and Martin Place in Sydney’s CBD will be slashed to roughly 3 minutes and 5 minutes respectively.

“Designed by leading global architecture firm Woods Bagot, Blue & William will feature outdoor terraces overlooking the Sydney Harbour Bridge, as well as an on-site café and end-of-trip facilities,” said Keppel REIT’s manager.

“The property is also designed to achieve the 5 Star Green Star Design and As Built Rating by the Green Building Council of Australia, as well as the 5.5 Stars National Australian Built Environment Rating System (NABERS) Base Building Energy Rating.”

Moreover, the office space will feature smart building technologies like motion detection lighting control systems and destination control lifts.

The transaction is expected to be concluded by the end of this year, with the development’s practical completion targeted by mid-2023.

Upon practical completion, Keppel Reit’s assets under management (AUM) will increase to S$9 billion across 11 properties in Singapore, Australia, and South Korea. The percentage of freehold assets in its portfolio will also rise from 30.1 percent to 32.6 percent by NLA.

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