UOL Group and Singapore Land Group, through their 20:80 joint venture company (JVCo), acquired a 50% stake in 388 George Street in Sydney, Australia for A$460 million ($404.5 million). The stake was acquired from Canadian group Brookfield, which holds a stake through its 50:50 JV with Investa Gateway Office. Investa Gateway Office is a JV of Oxford Properties Group and Hong Kong-listed Link REIT.

The freehold 388 George Street is a 30-storey Grade A commercial building with a site area of some 3,353 sqm (36,091.39 sq ft). Located on the corner of George Street and King Street, the building’s net lettable area (NLA) is around 41,098 sqm that’s made up of 91.1% (or 37,444 sqm) of office space and 8.9% of retail space at 3,654 sqm. The building was built in 1976 and was fully refurbished in 2020. It is home to a café, retail stores including Cartier’s Australian flagship store, as well as a rooftop restaurant and bar. The building has a weighted average lease-to-expiry (WALE) of 6.2 years by income.

According to the statements, UOL and Singapore Land Group’s JV paid a deposit of A$23 million upon the signing of the contract of sale. The balance of the consideration will be paid upon the completion of the sale. The sale will be completed once certain conditions, including the lack of an objection to the acquisition by the Foreign Investment Review Board of the Commonwealth of Australia (FIRB) under the Foreign Acquisitions and Takeovers Act 1975.

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The transaction is expected to be completed within the first half of 2025. Both groups say they will finance the acquisition using internal resources and external borrowings.

Shares in UOL and Singapore Land Group closed at $5.40 and $1.75, respectively, on Oct 11.