Keppel REIT is annoucing the acquisition of a freehold Grade A office property, the Pinnacle Office Park. Located in Macquarie Park, Sydney, the A$306 million purchase comprises 3 buildings with a total net lettable area (NLA) of 35,132 m². It has a 96.3% occupancy and a WALE of 4.8 years, with tenants such as Konica Minolta and Coles Supermarkets.
The acquisition is targeted to be completed in 4Q 2020 and will be fully funded with Australian dollar denominated debt for natural hedging. Post-acquisition, aggregate leverage would be approximately 38.7%.
The manager expects the acquisition to be DPU-accretive.