SINGAPORE - The Straits Trading Company said its subsidiary, Straits Real Estate (SRE), has agreed to acquire an office building in Melbourne, Australia for A$125 million (S$125.1 million).
The seller is Tackelly No. 6, in its capacity as trustee of the Tackelly No. 6 Trust.
The deal is subject to SRE obtaining approval from the Australian Foreign Investment Review Board.
Completion of the acquisition is expected to take place by mid-ugust.
The office building at 114 William Street is 25-storey high and situated on a freehold site of 1,858 square metres. It comprises 22 levels of office space, one level of ground retail space and two basement carparks.
Located in the heart of the financial and legal precincts in the western core of Melbourne's Central Business District, it has good accessibility, being near to Southern Cross, Flagstaff and Flinders Street train stations.
The property, which is currently leased out to a mix of reputable, high quality tenants from the financial and legal sectors, will provide SRE with a ready stream of income, said Straits Trading in a statement.
SRE intends to undertake various asset enhancement initiatives over time that will reposition the property and create additional value.
"We see a very significant opportunity to enhance the yield of the property through upgrading and repositioning the building," said SRE chief executive Desmond Tang.