Singapore’s Ascendas Real Estate Investment Trust has secured AMP Capital’s suburban office park at 1 – 5 Thomas Holt Drive, Macquarie Park, for A$288.9 million.
AMP Capital’s Diversified Property Fund elected to offload the landmark office park hoping to achieve at least $300 million for the asset with the capital earmarked to be recycled into its development pipeline.
Macquarie Park is the largest metropolitan office market in Australia and a well-established business precinct occupied by national and international corporate headquarters across the pharmaceutical, technology, electronics and telecommunications industries. The property is ideally situated in Macquarie Park with the Macquarie Park Metro station just 100m from the site. The property is also 750 metres away from the arterial M2
motorway.
The asset comprises three suburban office blocks with a net lettable area (NLA) of 39,188 sqm.
1-5 THD has one of the highest car parking ratios of 1 space per 35 square metres of NLA (total of 1,107 spaces) for a suburban office property within Macquarie Park.
The office blocks underwent substantial refurbishments between 2015 to 2016. Two of the office blocks, 1 and 3 Thomas Holt Drive, have each achieved a 5.0 Star NABERS energy rating. The on-site amenities include a café, two tennis courts, a swimming pool and barbeque areas.
Mr William Tay, Executive Director and Chief Executive Officer of the Manager said, “We are continuing to expand our suburban office portfolio in Australia as affordable satellite hubs such as Macquarie Park remain attractive for companies seeking to decentralise from the central business district (CBD). 1-5 Thomas Holt Drive is our fifth suburban office property investment in Australia. With this acquisition, Sydney accounts for 48% of our Australian portfolio.”
Net property income (NPI) yield for the first year is approximately 5.9% and 5.6% pretransaction costs and post-transaction costs respectively.
THe 3 buildings are fully leased with a weighted average lease expiry (WALE) of 4.5 years and average rental escalations of 3.25% to 3.75%
providing stable organic growth for Ascendas Reit. The key tenants, amongst others, are Australian companies Metcash and Foxtel.
The purchase price is in line with the independent market valuation obtained by Ascendas of A$288.9 million as at 1 December 2020.
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