Singapore’s Keppel REIT announced on Wednesday that it plans to acquire a 75% stake in Sydney’s Top Ryde City Shopping Centre for a gross purchase price of A$393.8 million ($259 million), marking a major push into non-discretionary retail.
The acquisition, which remains subject to approval from Australia’s Foreign Investment Review Board, values the freehold property at A$6,813 per square meter and is expected to deliver a fully-leased initial yield of 6.7%.
Including fees and taxes, the total estimated cost of the transaction is A$427.4 million, the REIT said.
The acquisition is expected to be completed by the first quarter of 2026.
Meanwhile, the company has launched a private placement to raise at least A$113 million, of which about S$109.6 million will be used to partially finance the purchase, Keppel REIT said.
Built in 2010 and refurbished in 2016, Top Ryde City Shopping Centre is a freehold convenience-focussed retail centre, anchored by major supermarkets Coles and Woolworths.
Its strategic location along an arterial route in Sydney enhances its appeal for both retail and delivery logistics.
($1 = A$1.5207)
Reuters
