Of the total consideration amount, Metro will contribute A$30.8 million to the investment. The sum will be funded mainly from internal cash sources and external borrowings, according to Metro's Oct 9 statement.
Metro Holdings, together with its joint venture (JV) partner, Sim Lian, have agreed to acquire 1 Castlereagh Street in Sydney, New South Wales, Australia, for A$196.4 million ($172.3 million). A sale and purchase agreement (SPA) was entered into between SLMC Property Australia and an independent third party on the same day. SLMC Property Australia is 30% indirectly owned by Metro and 70% indirectly owned by Sim Lian through their JV company (JVCo).
The freehold 27-storey office building is located within the financial core of Sydney’s central business district (CBD) and next to the newly-opened Martin Place railway station. The building, which was refurbished in 2021, has a net lettable area (NLA) of 12,418 sqm (133,666.24 sq ft) and an occupancy of 85%. The property’s weighted average lease to expiry (WALE) is about three years.
