Keppel Capital forms JV with healthcare firm Australian Unity

It will buy a 100% stake in an Australian REIT for $365,880.

Keppel Corporation’s asset management arm Keppel Capital will form a 50:50 joint venture (JV) with healthcare and insurance firm Australian Unity focussing on the Australian metropolitan office sector, according to a press release.

The JV, Australian Unity Keppel Capital, has entered into a share sale agreement (SSA) to acquire a 100% stake in Australian Unity Investment Real Estate Limited (AUIREL) for a purchase consideration of about $365,880 (A$400,000).

The purchase consideration will be paid in cash and funded through equity contributions in the JV. Both the JV and AUIREL will be associated companies of Keppel Corporation upon formation and completion of acquisition respectively.

The REIT’s portfolio comprises nine office properties located in Sydney, Adelaide, Melbourne, Brisbane and Canberra. The REIT has a total net lettable area of about 108,000sqm, an occupancy of 95.3% and a weighted average lease expiry of 3.5 years as at 30 June 2019.

AUIREL, currently a wholly-owned subsidiary of Australian Unity, is the responsible entity of the Australian Securities Exchange (ASX)-listed REIT, Australian Unity Office Fund.