UOL acquiring eight-storey office building in Sydney for $153 mil

SINGAPORE (Dec 8): UOL Group is acquiring an eight-storey Sydney office building as part of the group’s plan to diversify its presence in Australia and to strengthen recurring income streams.

The eight-storey office building with four-storey basement parking sits on a freehold site has an area of 2,815 sqm and a net lettable area of 11,259 sqm. The property is 100% tenanted with the lease expiring in 2028.

On Thursday, UOL indirect wholly-owned subsidiary, Success Venture (CS), entered into a sale and purchase agreement with Proprium Capital Partners (Australia), the trustee for the Linford Hold Trust, to acquire all interest in the property at 72 Christie Street, St Leonards for A$154.5 million ($152.7 million).

Incorporated in Australia, SVCS is 100% owned by UOL Investments (Australia), the company’s wholly-owned subsidiary incorporated in Singapore. SVCS’s principal activity is that of property investment.

A deposit of 10% has been paid on signing of the SPA. The balance of the purchase price will be payable on completion, which is currently scheduled for Dec 20, subject to satisfaction of conditions.

The acquisition would be financed by internal resources and external borrowings and is not expected to have a material impact on the group’s net tangible assets or earnings per share for the financial year ending 31 December 2018.

Year to date, shares in UOL are down 3o.2% to close at $6.23 on Thursday.