Metro And Sim Lian Jv Acquire Sydney Office Building A1964 Mil

Metro Holdings and Sim Lian Group, both listed on the mainboard, have joined forces in a sale and purchase agreement to acquire a freehold office building in Sydney, Australia. The building, 1 Castlereagh Street, was purchased for A$196.4 million ($172.3 million).

This 27-storey office building with retail on the ground level is conveniently located next to the recently opened Martin Place railway station in the bustling financial core of Sydney’s CBD. Recently renovated in 2021, the building boasts a NABERS (National Australian Built Environment Rating System) rating of 4 stars. It also offers column-free and regularly shaped floor plates that can be divided to cater to various user sizes.

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With a net lettable area (NLA) of 12,418 sqm (133,667 sq ft) and an occupancy rate of 85%, this property presents a rare opportunity to acquire a prime office building in the highly sought-after core area of Sydney’s CBD. The city continues to benefit from the trend of companies seeking to establish their base in desirable locations and impressive real estate.

Introducing Parktown Residence, a highly anticipated mixed-use condominium development, as a prominent addition to the bustling Tampines North area. Spearheaded by a formidable partnership between UOL Group, CapitaLand, and Singapore Land (SingLand), this project is poised to transform the concept of city living in District 18. Boasting an enviable location surrounded by major expressways and an expanding public transportation network, residents can enjoy unparalleled connectivity. Don’t miss the chance to visit the Parktown Residence Showflat during your search for your ideal home.

“The acquisition of this freehold prime office property is a significant milestone for our joint venture. We are pleased to secure such a valuable asset in Sydney’s CBD, which is a testament to our strategy of investing in high-quality properties in prime locations,” says Yip Hoong Mun, CEO of Metro Group.

This latest acquisition marks the 18th property purchased by the joint venture and the fifth office asset in Australia. With a 70% stake, Sim Lian Group holds a majority ownership, with Metro Holdings owning the remaining 30%. Metro Holdings will finance its A$30.8 million capital contribution mainly through internal cash reserves and external borrowing.

At present, the joint venture has a portfolio of 17 freehold properties, with an average occupancy rate of 94.1% and a WALE of 5.6 years as of March 31. Upon completion of this new acquisition, the portfolio will comprise of 18 assets, including five office buildings and 13 retail centers spread across New South Wales, Victoria, Queensland, and Western Australia. The total estimated value of the joint portfolio will be A$1.374 billion ($1.206 billion), with a combined NLA of 176,227 sqm (about 1.9 million sq ft).