Singapore’s CICT Buys 2 Sydney Office Bldgs For A$330.7mil

AUSTRALIA – Singapore-listed CapitaLand Integrated Commercial Trust (CICT) has agreed to purchase 66 Goulburn Street and 100 Arthur Street, 2 Grade A office buildings in the central business districts (CBD) of Sydney, according Singapore exchange (SGX) filings released on Friday morning (3 December, SGT).

The 2 commercial properties represent CICT’s maiden acquisitions in Australia, its second overseas developed market after Germany.

“The estimated aggregate purchase consideration is A$330.7 million (S$330.7 million), which is based on the adjusted net asset value of the trusts (holding the assets), taking into account the aggregate agreed property value of A$672.0 million (S$672.0 million), other adjustments and other assets, and less the total amount of liabilities of the two trusts (including the external bank loans taken out by the two trusts),” said CICT’s manager.

“The respective agreed property value is negotiated on a willing buyer willing seller basis, in line with the two independent valuations commissioned separately by the trustee of CICT and the Manager of CICT. CICT’s total acquisition outlay is about A$381.0 million (S$381.0 million), subject to completion adjustments.”

Situated at the southern edge of Sydney CBD’s Midtown Precinct, 66 Goulburn Street is a 24-storey office tower with ancillary retail space and a basement carpark.

It has an overall net leasable area (NLA) of 246,354 sq ft, of which 243,587 sq ft is made up of office space, while 2,766 sq ft are occupied by retail units.

Completed in 2004, the leasehold commercial property houses 25 tenants. It is 95.3 percent occupied and has a weighted average lease expiry (WALE) of 2.7 years. Its net property income (NPI) yield works out to 5.4 percent. Its agreed property value is A$300.0 million (S$300.0 million).

Meanwhile, 100 Arthur Street is a 23-storey office tower with ancillary retail space located in North Sydney CBD’s eastern quadrant. Completed in 2007, the freehold commercial property has an NLA of 291,508 sq ft.

It currently houses 16 tenants and has a WALE of 4 years, but its committed occupancy is just 62.3 percent due to refurbishment works carried out from 2019 to 2021 after the departure of 2 anchor tenants occupying about 64 percent of the building’s NLA in early 2020. The agreed property value is A$372.0 million, with an implied NPI yield of 5.1 percent.

The acquisitions are expected to be completed during the first quarter of 2022.