CapitaLand Integrated Commercial Trust (CICT) made its foray into the Australia market with an acquisition of two Grade A office buildings worth A$330.7mn ($232mn) in Sydney via its indirectly wholly-owned subsidiary. This is CICT’s first project in Australia and only its second overseas developed market after Germany, the REIT manager said via a filing. The transaction, expected to be completed in Q1 2022, will take the company’s overall portfolio property value to S$22.4bn ($16.36bn) and raise its overseas exposure to 7% from 4%. Pro forma estimates suggest that the DPU will rise to S$0.1054 from S$0.1023 assuming a completion date of January 1. CEO of the REIT manager, Tony Tan said that CICT will be recycling capital from the recent divestment of 50% stake in One George Street at an annual exit yield of 3.17% into the higher-yielding assets at a combined annual implied net property income yield of 5.2%.
CapitaLand’s SGD 3.65% Perps traded stable at 100.01 yielding 3.65%.
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