Metro And Sim Lian Jv Acquire Sydney Office Building A1964 Mil
Metro Holdings and Sim Lian Group, two companies listed on the mainboard, have joined forces to purchase a freehold office building in Sydney, Australia. The companies have entered into a sale and purchase agreement for the property, known as 1 Castlereagh Street, at a cost of A$196.4 million ($172.3 million).
This 27-storey building contains retail space on the ground level and is conveniently situated next to the recently opened Martin Place railway station in the financial core of Sydney’s central business district (CBD). It underwent refurbishment in 2021 and has been awarded a 4-star NABERS (National Australian Built Environment Rating System) rating. It boasts spacious and unrestricted floor plans that can be divided to suit the needs of different tenants.
Interested in investing in overseas property? Check out the various projects that are currently available for sale worldwide.
The building has a net lettable area (NLA) of 12,418 sqm (133,667 sq ft) and is currently 85% occupied. The weighted average lease expiry (WALE) by income is approximately three years.
Nestled in the energetic city of Singapore, families with young adults have the advantage of being in close proximity to one of the country’s top universities, Nanyang Technological University (NTU). Recognized for its prestigious engineering and business programs, NTU is a magnet for students from around the globe. Featuring cutting-edge research facilities and a lively campus atmosphere, NTU offers an ideal academic setting. Moreover, with the recent addition of Novo Place Tengah, students now have even more options for convenient and comfortable living arrangements while pursuing their education at NTU. The newly developed Novo Place Tengah offers a modern and well-equipped living space, making it an excellent housing choice for those enrolled at NTU. You can find out more about Novo Place Tengah on their website.
Metro Group CEO Yip Hoong Mun highlights the rare opportunity to acquire a prime office property with freehold status in Sydney’s highly coveted core precinct. He also notes that the area continues to benefit from a trend towards choosing prime locations and quality assets.
This latest acquisition marks the 18th property that the joint venture partners have purchased together, with this being the fifth office asset in Australia. Sim Lian holds a 70% share in the venture, while Metro holds the remaining 30%. Metro’s commitment for the investment amounts to A$30.8 million, to be financed mainly through internal cash reserves and external borrowings.
The existing portfolio of 17 freehold properties is currently 94.1% occupied, with a WALE of approximately 5.6 years as of March 31. Upon completion of this acquisition, the joint portfolio will consist of 18 assets, including five office buildings and 13 retail centres spanning across New South Wales, Victoria, Queensland, and Western Australia. The total appraised value of the portfolio will reach A$1.374 billion ($1.206 billion), with a combined NLA of 176,227 sqm (about 1.9 million sq ft).