Keppel REIT acquires 50% stake in 255 George Street in Sydney for $321.0m

The freehold Grade A office building has a committed occupancy rate of 93%.

Keppel REIT has deepened its partnership with Mirvac Funds Management Australia Limited with the acquisition of a 50% stake in 255 George Street, a freehold Grade A office building in Sydney, Australia, for A$363.8m ($321.0m).

Apart from  255 George Street, the REIT co-owns 8 Chifley Square in Sydney and David Malcolm Justice Centre in Perth with Mirvac.

In a bourse filing, the REIT said 255 George Street will generate a first-year yield that exceeds 6.0% and DPU accretion of 1.4%1 on a pro forma basis. 

Mirvac will be “providing rent guarantee on existing vacancies and potential expiries,” the REIT said.

Post-acquisition, Keppel REIT’s Singapore-centric portfolio will be worth $9.6b across 13 properties in Singapore (76.5% of AUM), Australia (19.3% of AUM), South Korea (3.3% of AUM) and Japan (0.9% of AUM), and the proportion of freehold assets in its portfolio will increase from 33.2% to 36.4% (by NLA).