SINGAPORE (July 15): Suntec REIT is acquiring a freehold Grade A office building in Adelaide’s CBD.

The 12-storey property located at 55 Currie Street, Adelaide, South Australia, has an approximate net lettable area of 282,000 sf and a weighted average lease expiry (WALE) of 4.4 years.

It also has a committed occupancy of 91.6% with key tenants such as the Commonwealth Government, South Australian Government, Allianz and Data Action.

Manager ARA Trust Management (Suntec) entered into the sale and purchase contract worth A$148.3 million ($141 million) with AEP Currie for the acquisition.

In the recent asset enhancement exercise completed in 2018, the lift system, chillers and building management system were upgraded. Solar panels were also installed to improve the sustainability of the building.

ARA Trust Management (Suntec) says the initial net property income yield of 8.0% will provide immediate DPU accretion upon completion of the acquisition by end August.

Chong Kee Hiong, CEO of the manager of ARA Trust Management (Suntec), says, “The acquisition of 55 Currie Street further enhances the stability of the REIT’s income. Together with the completion of the existing projects under development and the recent acquisition of 21 Harris Street in Pyrmont, Sydney, approximately 17% of Suntec REIT’s assets under management and approximately 23% of the income contribution will be from Australia.”

Units in Suntec REIT closed flat at $1.94 on Monday.