Published 20 July 2011
K-Reit – the real estate investment trust set up by Keppel Land Ltd of Singapore – has entered into an agreement to buy 50% of a 30-storey office building rising in Sydney, 8 Chifley Square. It’s K-Reit’s third Australian acquisition.
The Singaporean trust will buy 50% of Mirvac 8 Chifley Trust, which owns 8 Chifley Square, from the Mirvac Property Trust in a price range of$A154.4-169.8 million, depending on the committed rental rates of the leases when the property is completed in the third quarter of 2013.
The building, at the corner of Hunter & Elizabeth Sts in the Sydney cbd, will have a net lettable area of 19,110m² and is targeted to achieve a 6-star green star rating by the Green Building Council Australia and a 5-star NABERS (national Australian built environment rating system) energy rating.
K-Reit said that. through the application of green technologies & effective water reduction, reduced emissions of CFCs and the use of sustainably sourced materials, the building would have 75% less carbon emissions than those of a typical Sydney cbd office building.
K-REIT Asia has 6 other assets, 4 in Singapore – Bugis Junction Towers, a one-third interest in Marina Bay Financial Centre Towers 1 & 2 and Marina Bay Link Mall, a one-third interest in One Raffles Quay and a 73.4% interest in Prudential Tower (in which it’s just agreed to increase its stake to 92.8%). In Australia, it Asia owns the 77 King St office tower in Sydney and a 50% interest in 275 George St in Brisbane.
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Attribution: Company release, story written by Bob Dey for the Bob Dey Property Report.