SINGAPORE (Aug 18): Ascendas-Singbridge is acquiring 66 Goulburn Street, a Grade ‘A’ commercial building in Sydney’s central business district, for A$252 million ($270 million) from Australia-listed GDI Property Group.  

66 Goulburn Street is located at the north-west corner of Goulburn and Castlereagh Streets, and currently houses government entities as well as financial services and legal firms.

It has a net lettable area (NLA) of approximately 22,890 sq m over 24 office levels, a ground floor retail space, and 53 basement parking spaces.

In a press release on Friday, the urban development and business space solutions provider says its latest acquisition brings the group’s total assets under management (AUM), including those held by Ascendas REIT and Ascendas Hospitality Trust in Australia, to approximately $2.6 billion.

"This asset has a relatively long weighted average lease expiry profile and good covenant tenants. It represents an attractive investment proposition against the backdrop of office supply removal in the midtown precinct due to residential conversions and limited new office supply across Sydney CBD over the next few years,” says Jonathan Yap, chief investment officer and head of real estate funds, Ascendas Singbridge.

“Hence, market rental growth is forecast to remain strong for the mid-term with decreasing rental incentives.”