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K-REIT Asia, a Singapore-listed real estate investment trust is preparing to boost its Australian coverage, and is now in negotiations to acquire a bulk space in a first-class office tower located in Sydney’s central business district area, a published report revealed.
The 77 King Street tower lies on the corner of George Street and the home of the famous glass-box Apple Store. But, the Apple Store is not included in the deal; rather, the remaining retail space and the office tower itself are being sold as a single stratum, according to the report.
The office tower is likely to be sold for over S$130 million (A$110 million) on an expected city-wide increase in capital and rental values. The stratum is around 13,500 sq m. CB Richard Ellis is now brokering the deal with Savills.
The tower has been renovated by Victor Comino, a private investor who has invested around A$60 million over the past ten years in the asset.
AFR reported that many offshore bidders showed interest in the tower, including Swiss firm AFIAA Foundation for International Real Estate Investments, Government of Singapore Investment Corporation, German pension fund company Deka Immobilien Investment and Hong Kong-based CLSA Asia Pacific Markets unit.
In a phone interview, a representative for K-Reit Asia Management said: “K-Reit Asia is actively on the lookout for suitable pan-Asian acquisition targets, and will make the appropriate announcements if and when such deals materialise.”
K-Reit Asia completed its first overseas deal earlier this year when it purchased a 50 percent stake in a high-profile commercial building in Brisbane, Queensland. The company splashed out S$210.4 million (A$166 million at the time) for the stake located in 275 George Street from a wholesale fund run by Charter Hall Group.