Ascendas Funds Management, the manager of Ascendas Reit, announced that the Reit has acquired a freehold suburban office building in Melbourne, Australia, from the seller ESR FPA (Wellington Road).
Nissan Motor Co (Australia) will commence a 10-year lease for about 65% of the space when the building is completed (Picture: Ascendas Reit)
The building is located at 254 Wellington Road in the Monash Technology Precinct and will be completed by June 2020. It was acquired for A$110.9 million ($104.4 million), and the purchase consideration comprises the land and the development cost of the property, and is in line with its “as if complete” market valuation.
The property is an eight-storey development with offices, a workshop, a café, end-of-trip facilities, and a 911-lot, multi-storey car park. It has a net lettable area of 188,444 sq ft. This is the fourth suburban office property in Australia held by Ascendas Reit.
Nissan Motor Co (Australia) will commence a 10-year lease for about 65% of the space when the building is completed. Their lease has a built-in rent escalation of 3% per annum. ESR FPA (Wellington Road) will also provide a three-year rental guarantee for any remaining vacant space after the property is built.
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