The manager of CapitaLand Integrated Commercial Trust (CICT) is acquiring from an unrelated third-party a 50.0% interest in 101 – 103 Miller Street and Greenwood Plaza, an iconic integrated development in North Sydney Central Business District (CBD), Australia, for a purchase price of A$422.0 million ($409.3 million).

The property has a yield of 4.9%, based on its annualised 1H2021 net property income (NPI) and a passing NPI yield of 5.6% . CICT’s total acquisition outlay of A$454.4 million for this acquisition comprises the purchase price of A$422.0 million, other expenses of A$28.2 million and acquisition fees of A$4.2 million. It will be funded by a combination of debt, divestment proceeds and remaining proceeds of about $95.9 million from the private placement closed on Dec 8.

On a pro forma annualised 1H2021 distribution per unit (DPU) basis, assuming that this acquisition was completed on Jan 1, 2021, the property was held and operated till June 30, 2021 and the funding mix is as detailed above, the DPU accretion is expected to be 1.0%. The transaction is expected to be completed in 1Q2022.

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