Singapore's Soilbuild REIT has made its maiden entry into the Australian commercial market, acquiring an office tower in Canberra for $55 million and a processing plant in South Australia for $61.25 million.
Both properties were owned by Perth-based fund manager Ascot Capital.
In Canberra, the company has purchased Australia Place, an eight-storey commercial office building at 14 Mort Street with a total lettable floor area of 9,383 square metres and a weighted average lease expiry of 6.5 years.
The building's gross lease has an annual rental increase of 3.75 per cent per annum.
Ascot purchased Australia Place, which is currently occupied by the federal government, for $41.5m in 2016. The building was fully renovated in 2014.
The 21,424sq m processing facility, located 20km north of Adelaide's CBD in Burton, is occupied by Inghams Group on a triple net lease expiring in 2034 with five further 10-year option periods.
The poultry processing plant has a weighted average lease expiry of 16.1 years.
Soilbuild Reit has established a wholly owned managed investment trust by the name of Soilbuild Australia Trust for the purposes of acquiring and holding the properties.
“The proposed acquisitions will provide high-quality assets to anchor Soilbuild REIT’s expansion into the Australia office and industrial markets, which offer growth potential and scalability,” Soilbuild REIT chief executive Roy Teo said.
“Australia has a growing and mature real estate market underpinned by strong domestic consumption and population growth.”
“The acquisitions will provide high-quality assets to anchor Soilbuild REIT’s expansion into the Australia office and industrial markets, which offer growth potential and scalability.”
The newly captured Australia properties are expected to contribute approximately 10.1 per cent of Soilbuild's portfolio income and make up 9.5 per cent of its portfolio by asset value.
Soilbuild currently owns 11 properties in Singapore with its portfolio is now expected to grow from $1.13 to $1.25 billion with its first acquisitions down under.