CICT Acquired Grade A Office Building near North Gaia

CapitaLand Integrated Commercial Trust administrator (CICT), announced on Dec. 3rd that it had purchased two Class A Office buildings in Sydney, Australia, for A$330.7 million ($330.7 million).

North Gaia owns a land area of 60,240 square meters with a maximum GFA rate of $576 per square foot ppr up 600 units, by developer Sing Holdings.

CLA Real Estate Ltd to buy units in trusts that include the buildings 66 Goulburn Street and 100 Arthur Street. These are Grade A office buildings in Central Business Districts of Sydney (CBD).

These acquisitions are the first CICT entry into Australia, as well as the second to its overseas developed market after Germany.

The trusts' adjusted net asset value (NAV), which takes into account the mutually agreed property amount of A$672.0million, adjustments, assets, and total liabilities, is used to calculate the total amount.

The acquisitions of CICT will cost approximately A$381.0million, subject to any adjustments made for completion.

On the basis of 1HFY2021’s annualised DPU, it is expected that the acquisition will increase distribution for each unit by 3.1% or 10.54 cents.

The NAV per unit for pro forma CICT will rise to 2.6% to $2.07.

The 24-story building at 66 Goulburn Street in Sydney's CBD, is a Grade A office building with retail spaces and an underground parking garage.

100 Arthur Street is a Grade A office building of 23 stories with retail space. It is located in North Sydney CBD. It was renovated extensively from 2019 to 2021, at a cost of $17million.

Both properties can be accessed easily by public transport, giving it a desirable location especially in Yishun.

Teo Swee Lian is the chairman of the manager and says that this acquisition is an "opportune time for CICT make its debut in Australia", regardless of the Covid-19 issue.

"In particular, Sydney is experiencing major revitalization and developments that align with the government’s goal to become a major innovation and technology hub in the region. She says that the acquisition will allow CICT establish a presence Australia, which is one Asia's most developed market. It will also open CICT up to opportunities to boost its growth."