Singapore listed industrial real estate investment trust Ascendas Real Estate Investment Trust (Ascendas Reit) has agreed to acquire a suburban office property (MQX4), to be developed at 1 Giffnock Avenue, Macquarie Park, in Sydney, Australia for A$167.2 million (S$161.0 million) from developers Frasers Property Industrial and Winten Property Group.
MQX4 sits on freehold land of 3,308 square metres and on completion will comprise a total net lettable area of 19,384 square metres made up of office (17,753 square metres) and retail (1,631 square metres) space. The property is designed as a nine-storey building, comprising eight levels of office space, ground floor retail and 204 car spaces.
MQX4 is located in Macquarie Park, the largest metropolitan market in Australia with a c.860,000 square metres of commercial office accommodation. It is a well-established business precinct occupied by national and international corporate headquarters across the pharmaceutical, technology, electronics and telecommunications industries.
The developers will design and build the suburban office property project in Sydney, the company said in a statement.
“We are delighted to secure our first suburban office property in Macquarie Park, Sydney’s premier innovation location, and Ascendas Reit’s fifth suburban office asset in Australia. We believe that decentralisation trends will continue to benefit Macquarie Park which has already attracted many leading companies who have set up their headquarters in the precinct. This DPU accretive investment will enhance the quality and resilience of Ascendas Reit’s Australian portfolio further given its excellent location and sustainable building design,” said William Tay, Executive Director and Chief Executive Officer of the Manager.
The completion of the land sale is expected to occur in 4Q 2020, and office building project is expected to be completed around mid-2022. The developers will provide a three-year rental guarantee from completion of the property for any vacant spaces.