Keppel REIT Expands Into Grade A Metropolitan Office Space With Acquisition Of Sydney Freehold Commercial Property
September 15, 2020 – Keppel REIT Management Limited announced that Keppel REIT has entered into an agreement with the Goodman Grou2 to acquire a 100% stake in Pinnacle Office Park, a freehold Grade A commercial property comprising three office buildings located within Macquarie Park in Sydney.
The agreed property value is A$306.0 million (S$303.3 million) (US$222.8 million)
Mr Paul Tham, CEO of the Manager, said, “With an initial net property income yield of 5.25%4, the acquisition of Pinnacle Office Park is in line with our active portfolio optimisation strategy to improve Keppel REIT’s income resilience and portfolio yield. The expansion into the Grade A metropolitan office space strengthens our portfolio as it complements our prime CBD offering.
“In the wake of COVID-19, we believe demand in Australia for quality and well-networked metropolitan locations, such as Macquarie Park, will increase as more companies seek cost-effective solutions or adopt a hub-and-spoke business model for office locations. The acquisition of Pinnacle Office Park allows Keppel REIT to gain exposure to this key metropolitan office market.”
With a total net lettable area (NLA) of 35,132 sm (378,165 sf) across three office buildings, Pinnacle Office Park is strategically located within Macquarie Park. Macquarie Park is the second largest office market in New South Wales5 and has benefitted from improvements in transport infrastructure.
Read more here..