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ASCENDAS Real Estate Investment Trust (A-Reit) has completed the acquisition of a CBD fringe office property at 100 Wickham Street, Fortitude Valley, in Queensland, Australia, for A$83.8 million (S$90.3 million) from 100W Pty Ltd.
The Reit is expected to incur an estimated total transaction cost of A$6.1 million, which includes stamp duty, professional advisory fees, and acquisition fees payable to the manager. The latter is one per cent of the purchase consideration, or A$838,000.
The property is fully occupied and the key tenants include the State of Queensland (Department of Health) and three data centre operators.
The leases have annual rental escalations of between 3 per cent to 4 per cent and the weighted average lease expiry of the property is 4.8 years as at end-June 2017.
Net property income yield for the first year is about 7.6 per cent and 7.1 per cent pre-transaction costs and post-transaction costs respectively.
The annualised pro forma financial effect of the acquisition on FY16/17 distribution per unit (DPU) would be an improvement of 0.054 Singapore cent, the trust said.
The trust ended a cent higher at S$2.68 on the stock market.