Keppel REIT buys office building under development in North Sydney
Keppel REIT has entered into an agreement to acquire a 100 percent interest in Blue & William, a freehold class A office building currently under development in North Sydney, for A$327.7 million ($233 million).
Shirley Ng, deputy CEO and head of investment of the manager, said, “In line with our active portfolio optimization strategy, this DPU-accretive investment brings an initial net property income yield of 4.5 percent, which will enhance Keppel REIT’s overall portfolio returns. At the same time, regular coupon will be received throughout the development phase, providing robust risk-adjusted returns.”
Ng added, “The investment will also see Keppel REIT expand strategically into North Sydney, a major commercial district with positive leasing dynamics. Designed with tenant experience and wellness as a priority, Blue & William, which will include advanced green features and offer panoramic views of the Sydney Harbour Bridge, is set to be the preferred b