CICT to acquire two Grade A offices in Australia for S$330.7m

The acquisition is expected to be completed in the first quarter of 2021.

CapitaLand Integrated Commercial Trust (CICT) has entered into a unit sale agreement with CLA Real Estate Holdings Pte. Ltd. to acquire two Grade A offices in Australia for an aggregate purchase consideration of S$330.7m (A$330.7m).

The two buildings which CICT will acquire are the 24-storey ​​66 Goulburn Street and 23-storey 100 Arthur Street, which are both located in the central business districts (CBD) of Sydney.

The acquisition is expected to be complete in the first quarter of 2022.

Teo Swee Lian, chairman of CICT Management Limited (CICTML)—the Trust’s manager—said the purchase of the two properties will allow CICT to gain a foothold in Australia, one of Asia Pacific’s largest developed markets, and open the company to more opportunities to drive growth.

Lian said the addition of the two properties in CICT’s portfolio is also in line with the Trust’s sustainability commitment.

Both  ​​66 Goulburn Street and 23-storey 100 Arthur Street have National Australian Built Environment Rating System (NABERS) ratings. The former has a 5.5-Star NABERS Energy and 4.5-Star NABERS Water rating, while the latter was rated 4-Star NABERS Energy and 4.5-Star NABERS Water.

Post-acquisition, the two properties will also increase CICTs overall portfolio poverty value by approximately 3% to S$22.4b, and their overseas portfolio exposure to about 7% from 4%, according to Tony Tan, CEO of CICTML.