[SINGAPORE] OUE Real Estate Investment Trust is acquiring a further 50 per cent of Salesforce Tower, a 55-storey prime freehold commercial tower in Sydney, Australia, it announced on Friday (Oct 23).
The deal, valued at A$864 million (US$606.4 million), takes the Reit’s control of the property, located at 180 George Street, to 69.9 per cent upon completion.
Funded through debt and partial net proceeds from the divestment of Crowne Plaza Changi Airport, the property is expected to have a distribution per unit accretion of 3.2 per cent on a pro forma basis for the six months ended Jun 30, 2026.
The proposed deal builds on the Reit’s entry into Sydney, following its purchase of an initial 19.9 per cent interest on Mar 16, 2026.
Han Khim Siew, CEO of the manager, said: “The proposed acquisition advances Phase 3 of OUE Reit’s portfolio transformation... By redeploying the net cash proceeds from the divestment of Crowne Plaza Changi Airport into high-quality, future-ready properties such as 180 George Street, we continue to enhance portfolio quality while capturing opportunities across market cycles and geographies.”
He added: “We remain confident in Sydney’s long-term fundamentals... Looking ahead, Singapore remains our core market, complemented by selective investments in Australia.”
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Completed in November 2022, the 263 m tower is Sydney’s tallest office building and has an actual occupancy rate of 100 per cent as at Sep 30, 2026.
On Oct 21, the Reit posted a 4.6 per cent year-on-year increase in net property income to S$59.6 million for the third quarter ended Sep 30.
This comes as stronger hospitality performance offset weaker contributions from its commercial portfolio.
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OUE Reit closed up 4.5 per cent or S$0.015 at S$0.345 on Friday.