OUE REIT purchases additional 50% of Sydney’s Salesforce Tower for A$864 million
OUE Real Estate Investment Trust is buying the remaining half of the Salesforce Tower in Sydney, raising its ownership to 69.9%. The A$864 million (US$606.4 million) transaction is being financed with borrowed money and cash from the sale of its Crowne Plaza Changi Airport asset. The REIT says the deal should lift distribution per unit by about 3.2% on a pro‑forma basis for the six months to 30 June 2026.
Why it matters
The acquisition increases OUE REIT’s exposure to Sydney’s office market and is expected to raise unit distributions by roughly 3.2%, which could improve investor yields. The financing mix adds debt to the REIT’s balance sheet while using proceeds from a non‑core hospitality asset.
Key facts
- 1The purchase price is A$864 million (US$606.4 million). businesstimes.com.sg
- 2The transaction raises OUE REIT’s stake in the tower to 69.9%. businesstimes.com.sg
- 3Funding comes from debt and cash generated by selling the Crowne Plaza Changi Airport property. businesstimes.com.sg
- 4Distribution per unit is projected to increase by 3.2% on a pro‑forma basis for the six months ended 30 June 2026. businesstimes.com.sg
- 5OUE REIT’s Q3 net property income grew 4.6% year‑on‑year to S$59.6 million. businesstimes.com.sg
- 6The tower’s occupancy was 100% as of 30 September 2026. businesstimes.com.sg
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.