Suntec REIT is announcing the acquisition of 21 Harris Street, a 9-storey Grade A commercial building in Sydney. Currently under construction and due to be completed next year, the property of 18,900 m² has a mix of retail and office space as well as a 170 car carpark.
The Property is 91.2% pre-committed and will be anchored by Publicis Groupe, a global communications and marketing company as their Sydney headquarter. The remaining pre-committed spaces will be leased to Campfire, an international co-working operator, as well as a childcare centre and a gym operator. The Developer will provide a rent guarantee on the unlet office space for three years post practical completion. The weighted average lease expiry of the Property (including rent guarantee) is approximately 10.2 years (by NLA) with an annual rental escalation of between 3.0% to 4.0%.
The manager expects the acquisition to be DPU accretive and will fund the operation with a mix of debt and equity.