The acquisition will be funded through a mix of debt and proceeds from the earlier divestment of Lippo Plaza Shanghai, with gearing expected to increase to around 40.2%. The passing yield is around 5.8% and DPU accretion is 0.9% on a pro forma basis.
Tabitha Foo of DBS Group Research has kept her "buy" call and 45 cents target price on OUE REIT after it announced the acquisition of a stake in a Sydney office.
On Feb 24, the REIT, whose portfolio has been Singapore-dominant, announced that it is acquiring the Salesforce Tower at an agreed property price of A$357.2 million, or around $319.8 million, with a purchase consideration of A$195.5 million, after accounting for attributable debt and other net assets.
