OUE buys Salesforce Tower stake
In its maiden Australian investment, OUE Real Estate Investment Trust is buying a 19.9 per cent stake in Sydney’s Salesforce Tower from Mitsubishi Estate Co.
The deal values the stake at $357.2 million.
After accounting for debt, it will pay $195.5m (S$175m) in cash for the interest.
Salesforce Tower, at 180 George Street, Circular Quay, contains nearly 60,000 square metres over 55 storeys.
It is 99.2pc occupied with a weighted average lease expiry of 5.5 years; tenants include Salesforce, TikTok and Jones Lang LaSalle.
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China’s Ping An Real Estate owns 50pc of Salesforce Tower with a Lendlease fund holding a fifth (story continues below).
The balance 10pc stake is controlled by investors including the Odakyu Electric Railway and ME Global Partners.
In a statement, OUE REIT said the asset is expected to deliver an initial yield of about 5.8pc and increase its distribution per unit by around 0.9pc on a pro forma basis.
Chief executive officer Han Khim Siew said the acquisition marks the start of the trust’s next phase of growth, following the sale of an older Shanghai asset in 2024.
After the deal, Singapore real estate will still account for about 94.9pc of the OUE REIT’s portfolio value.
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