OUE REIT to acquire 19.9% stake in Sydney’s Salesforce Tower for A$195.5m at 5.8% initial yield, in 0.9% DPU‑accretive, S$180m deal
Summary:
-
OUE REIT will buy a 19.9% interest in Salesforce Tower, a premium freehold Grade A office at 180 George Street, Sydney CBD, via units in three Lendlease trusts and 22% of the trustee company.
-
The A$195.5 million (about S$175.0 million) purchase consideration implies a property value of A$357.2 million (S$319.8 million) for OUE REIT’s stake and an initial passing yield of 5.8%, with total acquisition cost estimated at A$201.2 million (S$180.1 million).
-
The deal will be funded through a mix of new debt and part of the net proceeds from the divestment of Lippo Plaza Shanghai, lifting pro forma aggregate leverage from 38.5% to 40.2%.
-
Management guides for about 0.9% DPU accretion (FY2025 pro forma DPU rising from 2.23 to 2.25 Singapore cents) while NAV per unit remains at S$0.56 post‑transaction.
-
The 99.2%-occupied tower, with WALE of 5.5 years by rent and blue-chip tenants including Salesforce, TikTok and JLL, will raise portfolio value from S$5.8 billion to S$6.1 billion and add 5.1% Australia exposure, reducing asset and tenant concentration risk.