SINGAPORE (EDGEPROP) - The manager of CapitaLand Integrated Commercial Trust (CICT), on Dec 3, says it has acquired two Grade A office buildings in Sydney, Australia for a purchase consideration of A$330.7 million ($330.7 million).

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The trust had entered into a unit sale agreement with CLA Real Estate Holdings Pte. Ltd. to acquire the units in two trusts that hold 66 Goulburn Street and 100 Arthur Street, two Grade A office buildings in Sydney’s central business districts (CBD).

The acquisitions mark CICT’s first inroad into Australia, its second overseas developed market after Germany.

The total consideration is based on the adjusted net asset value (NAV) of the trusts, taking into account the aggregate agreed property value of A$672.0 million, other adjustments and other assets, and less the total amount of liabilities of the two trusts.

CICT’s total acquisition outlay will come in at around A$381.0 million, subject to completion adjustments.

The acquisition is said to be accretive to CICT’s distribution per unit (DPU) by 3.1% (or 10.54 cents) on a pro forma annualised 1HFY2021 DPU basis.

CICT’s pro forma NAV per unit would be lifted by 2.6% to $2.07.

66 Goulburn Street, in Sydney’s CBD, is a 24-storey Grade A office building with ancillary retail space and a basement car park.

100 Arthur Street, a 23-storey Grade A office with ancillary retail space, is located in North Sydney’s CBD. The building underwent a major refurbishment from 2019 to 2021 at a total cost of A$17 million.

Both properties have easy access to public transportation and amenities.

They have also achieved sustainability ratings under the National Australian Built Environment Rating System (NABERS).

Teo Swee Lian, the chairman of the manager, says the acquisition is an “opportune time for CICT to enter Australia” despite the evolving Covid-19 situation.

This is “[the country’s] attractive office market underpinned by healthy economic fundamentals in the medium to long term, and expected recovery as the country emerges from Covid-19 restrictions,” she says.

“In particular, Sydney is witnessing major development and rejuvenation initiatives in line with its government-backed ambition to become a leading innovation and technology hub in the region. The acquisition will allow CICT to gain a foothold in Australia, one of Asia Pacific’s largest developed markets, and open CICT to more opportunities to drive growth,” she adds.

This article first appeared on The Edge Singapore.