Starhill Global REIT to acquire Australian freehold property for $302.4m

It’s a 716k sq ft property.

Starhill Global REIT (SGREIT) announced that it has proposed to acquire Myer Centre Adelaide, a freehold property in South Australia, for a purchase consideration of A$288m (~S$302.4m).

According to OCBC, Myer Centre Adelaide has a total area of 716k sq ft and comprises a retail centre (95% occupancy rate), three office buildings (93% occupancy rate) and four basement levels with 467 carpark lots.

OCBC adds that this asset will be purchased at an initial NPU yield of 6.6%. SGREIT intends to fund this acquisition via a combination of internal working capital and external borrowings.

This would raise its gearing from 28.6% to 35.3%. On a pro forma basis, management estimates that this acquisition would provide a 2.8% accretion to its DPU for the 12 months ended 31 Dec 2014.