PROPERTY developers UOL and Singapore Land (SingLand) are in preliminary confidential discussions with an unnamed party on the potential acquisition of a 50 per cent stake in “an office and retail building” in Sydney, Australia.
Addressing articles by Australian media which they were recently “made aware of”, both companies on Thursday (Sep 26) said discussions were ongoing, with no definitive terms nor formal legal documentation agreed on between the parties.
Both added that there was no certainty nor assurance whatsoever that any transaction would arise from the discussions.
UOL and SingLand said they intend to “make the appropriate announcement where there is further material development regarding the potential transaction, in compliance with the applicable rules”.
Shares of UOL rose S$0.04 or 0.7 per cent to S$5.55, while SingLand was trading S$0.01 or 0.6 per cent lower at S$1.81 as at 1.51 pm on Thursday, after both companies made their separate filings.
Their responses come after the Australian Financial Review (AFR) exclusively reported that Canadian property group Brookfield was selling its half stake in a 28-storey office tower at 388 George Street in Sydney to UOL.
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The deal’s consideration was reported by AFR to range from A$450 million (S$397 million) to A$480 million, representing a capitalisation rate of about 6.2 per cent.
AFR noted that the last transaction in 388 George Street was done on a cap rate of about 4.5 per cent.
It also claimed that UOL’s half stake in the property would be held in a trust managed by Investa, which manages the remaining 50 per cent stake in the building that is held in a fund owned by Australian real estate giant Oxford Properties and Hong Kong’s Link Reit.
Located in the Central Business District of Sydney, 388 George Street is home to luxury retailer Cartier’s flagship boutique.
It was built in the 1970s and completed A$200 million worth of redevelopment works in 2020.
Based on information available on Link Reit’s website, the building has a net lettable area of 14,255 square metres (sq m), comprising 38,364 sq m of Grade A commercial office space as well as 2,680 sq m of retail space.
AFR’s story was later syndicated by Australian property listing platform Commercial Real Estate.
