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Ascendas-Singbridge to acquire commercial building in Sydney for A$252m

URBAN development and business space solutions provider Ascendas-Singbridge Group has entered into a contract of sale with GDI Property Group to acquire 66 Goulburn Street, an iconic A-Grade commercial building in Sydney central business district (CBD) for A$252 million (about S$270 million).

The property has a net lettable area of about 22,890 sq m over 24 office levels, a ground floor retail space and 53 basement parking spaces.

Located at the north-west corner of Goulburn and Castlereagh Streets, the building is accessible via public transportation, and houses government entities as well as financial services and legal firms.

Jonathan Yap, Ascendas-Singbridge's chief investment officer and head of real estate funds, said: "Since acquiring 100 Arthur Street in North Sydney last year, we have been actively sourcing for suitable opportunities to expand our office portfolio in Australia.

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"This asset has a relatively long weighted average lease expiry profile and good covenant tenants. It represents an attractive investment proposition against the backdrop of office supply removal in the midtown precinct due to residential conversions and limited new office supply across Sydney CBD over the next few years.

"Hence, market rental growth is forecast to remain strong for the mid-term with decreasing rental incentives."