Singapore’s OUE REIT Management Pte. Ltd. has announced a strategic acquisition, securing a 19.9% interest in the Salesforce Tower, a prime commercial property in Sydney’s Central Business District (CBD). The deal, valued at A$357.2m (approximately S$319.8m), marks OUE REIT’s first foray into the Australian market, enhancing its portfolio with a high-quality asset in a key location.
The Salesforce Tower, a 55-storey freehold property located at 180 George Street, boasts nearly full occupancy and a long weighted average lease expiry (WALE). This acquisition is expected to be yield-accretive, delivering a distribution per unit (DPU) accretion of 0.9%. The move aligns with OUE REIT’s strategy to diversify geographically whilst maintaining a strong presence in Singapore, where 94.9% of its portfolio remains post-acquisition.
The Sydney CBD’s Core Precinct is experiencing tightening prime supply and improving rental conditions, making this acquisition timely. The property is noted for its strong environmental, social, and governance (ESG) credentials, further enhancing its appeal. “This acquisition represents a rare opportunity to acquire a premium asset in Sydney’s Core CBD,” stated OUE REIT Management.
The acquisition will be funded through a combination of debt and proceeds from the recent divestment of Lippo Plaza Shanghai. Completion is expected in the first half of 2026, before 27 May. This strategic expansion into Sydney’s CBD is anticipated to provide OUE REIT with stable cash flow and reduced portfolio concentration risk, whilst offering potential upside in a robust market.
