Singapore-based Soilbuild Business Space REIT is expanding to Australia for the first time by agreeing to purchase two properties under deals totaling A$116.3 million.
The real estate investment trust agreed to buy the Australia Place office property at 14 Mort St. in Canberra in the Australian Capital Territory from Ascot Capital 14 Mort Street Property Trust and a poultry processing plant in the Burton suburb of Adelaide in South Australia from Ascot Capital Burton Property Trust.
Upon the scheduled third-quarter completion of the agreements, the REIT will own 11 properties in Singapore and two in Australia. Soilbuild Business will spend approximately A$121.0 million for both transactions that will grow its portfolio to S$1.23 billion from S$1.11 billion, according to a news release.
The Singaporean REIT will use Australian-dollar loans and the issuance of S$60 million or S$100 million of perpetual securities to fund the transaction.
As of Sept. 6, US$1 was equivalent to S$1.38.