Keppel REIT - UOB Kay Hian 2024-04-02: Choice Pick From Down Under

• Keppel REIT (SGX:K71U) has entered into an agreement to acquire an effective 50% interest in 255 George Street, a freehold 29-level Grade A office tower in Sydney, Australia, for A$363.8m (S$321.0m).
• - Read this at SGinvestors.io -
• recently refurbished in 2022,
• diversified tenant base anchored by Australian Tax Office and Bank of Queensland, and
• provides high yield of above 6.0%.

Strategically located at the heart of Core Precinct in Sydney.

• 255 George Street has total NLA of 38,996.8sqm (office: 38,805.0sqm, retail: 191.8sqm) and 188 car park lots. It has large and unobstructed column free floor plates of 1,400sqm.
• It is located along the prime end of George Street, within Sydney CBD's Core Precinct. It is opposite Bridge Street Light Rail Station and within walking distance to Wynyard Station.

Newly renovated with premium amenities.

• - Read this at SGinvestors.io -

Diversified mix of quality tenants.

• 255 George Street has high committed occupancy of 93% and a long WALE of 6.8 years. There are no significant lease expiries from 2024 to 2028. The key tenants include the Australian Taxation Office and the Bank of Queensland.
• The seller Mirvac, who continues to own 50% of the office tower through Mirvac Wholesale Office Fund I, will provide rent guarantee on existing vacancies and potential expiries of up to A$5.2m for a period of 12 months.

Core Precinct - the best performing sub-market within Sydney CBD.

• Read more at SGinvestors.io.

Jonathan KOH CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2024-04-02 SGinvestors.io

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