Suntec REIT 477 Trust announced on July 26 that it has entered into an agreement to buy a 50% stake in a site on Collins Street, in Melbourne, for A$414.17 million ($446.2 million). Suntec REIT 477 Trust is a wholly-owned sub-trust of Suntec Real Estate Investment Trust.

The remaining 50% stake will continue to be owned by the seller, Mirvac, who is also developing the property — a 40-storey office building named Olderfleet (below) — on the site. Completion is slated for mid-2020.

Olderfleet is set to have an estimated net lettable area of 624,312 sq ft, which will include 21,528 sq ft of retail space. According to the REIT, the property is situated in the Western Core of Melbourne’s CBD, within the Free Tram Zone.

Source: Suntec REIT

“We are pleased to expand our footprint in Australia with the acquisition of 477 Collins Street. This is a strategic fit with Suntec REIT’s portfolio of high-quality assets and enhances its income and geographical diversification,” says Chan Kong Leong, CEO of ARA Trust Management (Suntec), which manages the REIT.