OUE Real Estate Investment Trust (OUE REIT) is set to bolster its presence in Sydney’s Central Business District with the proposed acquisition of an additional 50% interest in 180 George Street. This move will raise OUE REIT’s total stake in the property to 69.9%, following an agreement to purchase the interest for A$864m (approximately US$774.1m). The acquisition is expected to deliver a 3.21% distribution per unit (DPU) accretion on a pro forma basis for the six months ending 30 June 2026.
The acquisition will be funded through a combination of debt and proceeds from the divestment of Crowne Plaza Changi Airport. This strategic move allows OUE REIT to diversify its portfolio geographically whilst maintaining Singapore as its core market. The acquisition also provides OUE REIT with a majority interest in a premium freehold asset, enhancing its control over property-related decisions and enabling proactive asset management.
180 George Street, completed in November 2022, is a 55-storey commercial tower located in Circular Quay, Sydney. It boasts a 100% occupancy rate as of 30 September 2026, with a high-calibre tenant base including Salesforce, TikTok, and Jones Lang LaSalle. The property is recognised for its sustainability credentials, holding a Platinum WELL Certification and a 6 Star Green Star rating.
Chief Executive Officer Han Khim Siew stated, “The Proposed Acquisition advances Phase 3 of OUE REIT’s portfolio transformation and reinforces our track record as a disciplined capital allocator.” The acquisition is part of OUE REIT’s strategy to enhance portfolio quality and capture opportunities across market cycles and geographies.
Upon completion, OUE REIT’s portfolio value is expected to increase, with assets in Singapore and Australia comprising 82.4% and 17.6% respectively. This acquisition underscores OUE REIT’s commitment to delivering sustainable growth and long-term value for its unitholders.
