Suntec Reit announces completion of premium Melbourne office development

SUNTEC Reit announced on Monday that its office development, Olderfleet, at 477 Collins Street in Melbourne, Australia, received practical completion on July 31, 2020.

Suntec Reit co-owns the development with Australian property firm Mirvac.

Chong Kee Hiong, chief executive of the manager, said that with income commencement from this month, the development will enhance the Reit's income and improve its earnings and distribution to unitholders, with the long weighted average lease expire of about 11 years and annual rental escalations of between 3.5 per cent and 4 per cent.

The Reit said that Olderfleet is a premium-grade office building with a net lettable area of 58,000 sq m; this comprises 56,000 sq m of office space and 2,000 sq m of retail space.

The property has achieved a pre-commitment of 97 per cent, with additional 0.2 per cent with heads of agreement signed. There is also a five-year rent guarantee on vacant spaces.

The property is located within the Melbourne central business district. It is well-connected, with four tram lines serving Collins Street.