Metro acquires two properties in Singapore and Australia, appoints Ascott to manage Indonesia serviced residences

By Lim Hui Jie / The Edge Singapore | October 23, 2021 12:41 AM SGT
Photo: Metro
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SINGAPORE (EDGEPROP) -- Metro, along with its joint venture partner Sim Lian has announced the acquisition of a shopping centre in New South Wales, Australia, for a purchase consideration of about A$132.8 million ($133.9 million).
In a release, Metro says Cherrybrook Village Shopping Centre is a freehold property with a site area of 29,540 square metres, a total net lettable area of 9,381 square metres and approximately 441 carpark spaces.
It is 30 kilometres away from Sydney CBD and is “anchored by retail establishments”, such as Woolworths supermarket, Martelli's Fruit Market and 51 speciality tenants.
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The shopping centre enjoys a high committed occupancy of 98.4% as at 30 September 2021 and a weighted average lease expiry (WALE) of 3.1 years by income.
With this acquisition, Metro and Sim Lian will hold 16 freehold properties, comprising four office buildings and 12 retail centres spanning across four states in Australia, namely New South Wales, Victoria, Queensland and Western Australia.
The portfolio has a total appraised value of approximately A$1.07 billion and an average occupancy rate of 95.2% with a WALE of 6.5 years by income.
Metro also increased its equity stake in its joint venture by acquiring an additional 10% for both its entire Australian portfolio, as well as asset management company Sim Lian – Metro Capital, bringing its total shareholding to 30% and Sim Lian owning the remaining 70%.
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Singapore acquisition
Back at home, Metro has acquired 351 Braddell Road (picture above) via the Boustead Industrial Fund (BIF), after Boustead Projects divested the property to its subsidiary BIF for $121 million.
As 351 Braddell Road is only 50% owned by Boustead, the total consideration from divestment stands at $60.5 million, and Boustead revealed the expected net profit attributable from the transactions is approximately $6 million.
BIF will fund the acquisition of 351 Braddell Road via issuance of units in BIF, issuance of 7% notes due 2031, and debts.
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Metro announced that it subscribed to 26% of both the units and 7% notes in BIF, for an investment amount of $17.58 million.
351 Braddell Road is a “high-spec industrial property” in central Singapore, with a remaining land tenure of 27 years.
The 7-storey multi-user industrial building with ancillary facilities has a net lettable area of 236,864 square feet, and houses tenants such as NETs, Secretlab and Electrolux. It also has an existing WALE of 4.1 years.
With the 351 Braddell Road acquisition, the total portfolio under BIF will be 15 properties with an average occupancy of 97.2%, a WALE of approximately 6.4 years, and an average lease tenure of 32 years.
Indonesia
Separately in Indonesia, Metro has also engaged Ascott to manage the M+ serviced residences in Trans Park Bekasi, Jakarta.
Ascott will exclusively manage more than 200 units across two floors of student accommodation and three floors of corporate leases.
Trans Park Bekasi is 90% owned by Metro and 10% owned by Lee Kim Tah Group, and consists of five 32-storey residential towers with 5,660 units and all five towers topped-off.
Shares of Metro closed on Oct 22 at 74 cents, down 1.5 cents or 2% lower than its previous close.
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