Keppel REIT acquires 100% in Sydney freehold commercial property for A$306 mil

By Valerie Kor / EdgeProp Singapore | September 14, 2020 11:10 AM SGT
Pinnacle office park - EDGEPROP SINGAPORE
Pinnacle Office Park is located near Macquarie Park Metro Station (Credit: Keppel REIT)
SINGAPORE (EDGEPROP) - Keppel REIT has agreed to acquire a 100% stake in Pinnacle Office Park from Goodman Group.
The development is a freehold Grade A commercial property with three office buildings in Macquarie Park in Sydney.
It has a total net lettable area of 378,165 sq ft and is currently 96.3% occupied, with key tenants such as Coles Supermarkets and Konica Minolta.
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Pinnacle Office Park is located near Macquarie Park Metro Station and a major bus interchange. With the completion of the City and Southwest metro rail in 2024, the CBD will be 20 minutes away. Tenants enjoy amenities such as a childcare centre, gym, end-of-trip facilities, and a cafe.
The acquisition of the Pinnacle Office Park is a result of portfolio optimisation efforts to improve income resilience and portfolio yield, says Paul Tham, CEO of the REIT manager.
“In the wake of Covid-19, we believe demand in Australia for quality and well-networked metropolitan locations, such as Macquarie Park, will increase as more companies seek cost-effective solutions or adopt a hub-and-spoke business model for office locations,” he adds.
The property has an initial net property income yield of 5.25%. The acquisition is targeted to be completed in 4Q2020.
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