Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
Sign Up / Login Logout

Lost your password?
Register
Forgotten Password
Cancel

Register For This Site

A password will be e-mailed to you.

  • Capital Markets
  • Events
    • 2021 Mingtiandi Event Calendar
    • Join the Mingtiandi Asia Value-Add Forum 2021
    • Join the Mingtiandi Multi-Family Investment Forum 2021
    • Join the Mingtiandi Logistics Real Estate Forum 2021
    • Join the Mingtiandi Sustainable Real Estate Forum 2021
    • Join the Mingtiandi Data Centre Forum 2021
    • Join the Mingtiandi Office Strategies Forum 2021
    • Join the Mingtiandi Proptech Forum in November
    • More Events
  • MTD TV
  • People
  • Logistics
  • Asia Outbound
  • Retail
  • Design & Construction
  • Research & Policy
  • Advertise

Ascendas REIT Buys Sydney Office Project From Frasers JV for A$167.2M

2020/09/19 by Michael Cole Leave a Comment

macquarie exchange

Frasers and Wintek’s Macquarie Exchange will cover a total of 83,368 square metres

Singapore’s Ascendas REIT is picking up an office project in suburban Sydney, marking the second acquisition by an SGX-listed trust in the Macquarie Park area in less than a week.

The REIT managed by Singapore’s CapitaLand has agreed to purchase one of four buildings being developed in Macquarie Exchange, a business park joint venture between Frasers Property and Winten Property Group, for A$167.2 million ($121.9 million), according to an announcement to the Singapore exchange on Friday.

“We are delighted to secure our first suburban office property in Macquarie Park, Sydney’s premier innovation location, and Ascendas REIT’s fifth suburban office asset in Australia,” said William Tay, executive director and CEO of the manager of Ascendas REIT.

The deal to purchase the unfinished project near northwest Sydney’s Macquarie University was announced just six days after competing Singapore trust Keppel REIT revealed its own deal to buy a completed office park asset just one block away.

Suburbs Come Back in Style

In its latest acquisition, which comes at an initial net property income yield of 6.1 percent, the manager of Ascendas REIT is making a bet on the prospects for Macquarie Park, one of the city’s strongest secondary office markets, which echoes the ideas of its rivals at Keppel REIT.

william tay ascendas

Wiliam Tay, CEO of the manager of Ascendas REIT

“We believe that decentralisation trends will continue to benefit Macquarie Park which has already attracted many leading companies who have set up their headquarters in the precinct,” Tay said in explaining his firm’s decision to add the asset to the trust’s $9.38 billion portfolio.

Ascendas REIT’s compatriots at Keppel REIT, in explaining their decision to spend A$306 million to pick up the three-building Pinnacle Office Park on 13 September, had pointed to Macquarie Park’s status as the second-largest office market in New South Wales, following Sydney proper, while also highlighting the city’s improving infrastructure.

MTD Proptech Report

Ascendas REIT’s manager also noted transportation advantages in the area, with Sydney Metro’s City Line set to connect Macquarie Park with North Sydney and the New South Wales capital’s central business district when it is completed in 2024.

The deal is Ascendas REIT’s fifth suburban office acquisition in Australia, and when completed will bring the trust’s assets Down Under to 14 percent of its total holdings – up from 13 percent currently.

Buying Off the Plan

Ascendas REIT will be paying the equivalent of A$8,626 per square metre of net leasable area in the property at 1 Giffnock Avenue, which is set to cover some 19,384 square metres (208,648 square feet) when it is completed in mid-2022.

Sustainability Forum

Under the terms of the agreement, Ascendas REIT’s purchase price is adjustable upward or downward depending on exchange rates and other factors, with the trust set to fund construction costs. Frasers and Wintek won approval to start digging for Macquarie Exchange, a four-building, 83,368 square metre project in January of this year.

As part of the deal, the developers are providing rental guarantees which will provide payment to Ascendas REIT for any unoccupied space in the project for its first three years following completion.

The nine-storey building includes 17,753 square metres of office space, with another 1,631 square metres of retail on the ground floor. The project is 100 metres from the Macquarie Park Metro station, and is designed to achieve a 6 Star rating on Australia’s Green Star scale for sustainable buildings and a 5.5 mark on the country’s NABERS standard for energy efficiency.

Ascendas REIT expects to fund the acquisition through internal resources, existing debt facilities, or a combination of the two. The deal is the trust’s second acquisition in Sydney in less than three months, after it picked up a logistics property in the city for A$23.5 million in early July.

Related Stories

  • Ascendas REIT Buying Sydney Office Park for $218MAscendas REIT Buying Sydney Office Park for $218M
  • Singapore Fund Manager Teams with Dexus for $288M Sydney Office InvestmentSingapore Fund Manager Teams with Dexus for $288M Sydney Office Investment
  • CIC Nabs Half of Sydney’s Grosvenor Place Office Tower for $674MCIC Nabs Half of Sydney’s Grosvenor Place Office Tower for $674M
  • Keppel REIT Buys Sydney Office Park Asset From Goodman for A$306MKeppel REIT Buys Sydney Office Park Asset From Goodman for A$306M

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Outbound Investment Tagged With: Ascendas REIT, Australia, daily-sp, Featured, Sydney, William Tay

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Yardi Proptech Report

Get Mingtiandi Delivered

Multi-Family Forum

MTD TV

MTD TV data centre panel

Blackstone, Actis Predict Continued Growth for APAC Data Centres on MTD TV

MTD TV Interview with Jeffrey Perlman of Warburg Pincus Now Online

More MTD TV Videos

Latest Stories

Darren Searle Logos

KKR, Abu Dhabi Fund Back A$1B Logos Development Venture in Australia

Wang Jianlin Sun Hongbin Li Sze-Lim

Wanda Topped Mainland Commercial Developers Again in 2020 Despite 13% Income Drop

crown sydney

Blackstone Ties $6B Crown Offer to Licences and More Asia Real Estate Headlines

Sponsored Features

Tony Horrell

Colliers’ Global Investor Sentiment Report Anticipates Up to 50% Surge in Investment in 2021 Sponsored Feature

Andrew-Slevin-John-Foord (4)

Insurtech to Help Address Underinsurance Across Asian Real Estate Assets in 2021 Sponsored Feature

CK Lau

Asia Pacific Logistics Sector: Increasingly Varied Sector Requires Multiple Approaches Sponsored Feature

More Sponsored Features>>

MTD-QR-Code-320

Top Stories

Data Centre Startup Princeton Digital Lands $230M in Financing as China…Data Centre Startup Princeton Digital Lands $230M in Financing as China Platform Grows

Sun Hung Kai & Co Launches $300M Debt Vehicle to Grow Fund…Sun Hung Kai & Co Launches $300M Debt Vehicle to Grow Fund Management Business

Hongkong Land Leases Exchange Square Floors to S&P Despite Central…Hongkong Land Leases Exchange Square Floors to S&P Despite Central Market Slide


Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • Events
    • 2021 Mingtiandi Event Calendar
    • Join the Mingtiandi Asia Value-Add Forum 2021
    • Join the Mingtiandi Multi-Family Investment Forum 2021
    • Join the Mingtiandi Logistics Real Estate Forum 2021
    • Join the Mingtiandi Sustainable Real Estate Forum 2021
    • Join the Mingtiandi Data Centre Forum 2021
    • Join the Mingtiandi Office Strategies Forum 2021
    • Join the Mingtiandi Proptech Forum in November
    • More Events
  • MTD TV
  • People
  • Logistics
  • Asia Outbound
  • Retail
  • Design & Construction
  • Research & Policy
  • Advertise

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Newsletter Subscription
  • Terms of Use
  • Privacy
  • Advertise
  • Join the Mingtiandi Team