Ascendas REIT acquires $90.3m office property in Australia

The freehold property’s lettable floor area is 13,131 sqm.

Ascendas REIT (A-REIT) acquired a CBD fringe office property in No. 100 Wickham Street, Fortitude Valley, in Queensland, Brisbane.

According to OCBC Investment Research, the property was considered for $90.3m, including transaction costs.

The net property income (NPI) yield is expected to initially reach 7.6% before the transaction and 7.1% after it.

The deal would be fully financed through debt.

The freehold property is 14 storeys high and has a total lettable floor area of 13,131 sqm. It also has full occupancy, with tents such as Queensland's Department of Health and three data centre operators.

The leases have annual rental escalations of 3-4% with weighted average lease expiry (WALE) of 4.8 years as of 30 June 2017.