CapitaLand Investment acquires 22-storey office tower in Melbourne's CBD

Acquisition marks CLI's fifth investment in Australia within six months
By: CapitaLand Investment Limited
SINGAPORE - June 8, 2022 - PRLog -- CapitaLand Investment Limited (CLI) has acquired a freehold office tower in the Western Core of Melbourne's Central Business District for its flagship regional core-plus fund, CapitaLand Open End Real Estate Fund (COREF).  The acquisition marks CLI's fifth investment in Australia within six months.  This is COREF's first acquisition in Australia, and its fourth in Asia Pacific with total investment amounting to approximately US$900 million since the fund's establishment in August 2021.

The 22-storey office building, 120 Spencer Street, has a net lettable area of 32,000 square metres (sqm).  The property is strategically located opposite the Southern Cross Station, a major public transport hub that connects to the wider Melbourne region, with intra-city tram lines at its doorstep.  It also benefits from the recent revitalisation of the Western Core, led by the development of the Docklands precinct, the addition of new premium grade office towers, refurbishment of existing assets and migration of tenants, including many prominent occupiers, to the precinct.

Mr Paul Toussaint, Managing Director for Australia, CLI, said: "Australia is one of CLI's focus markets where we see significant potential for growth.  CLI has invested about A$1.5 billion in five quality assets in the country held through its private and listed funds in the past six months.  120 Spencer Street is CLI's latest deal in Australia, sourced and executed by our experienced local team.  In view of the post-COVID recovery and companies' steady return to work, we believe that the Australian office market is showing signs of growth that will overcome the near-term challenges of vacancy and tenant incentive levels.  120 Spencer Street is well-positioned to capitalise on this given its strong WALE, vibrant location benefiting from the area's rejuvenation, and potential for enhancements."

Mr Simon Treacy, CEO of Private Equity Real Estate, Real Assets, CLI, said: "Leveraging CLI's deep expertise and extensive network in the Asia Pacific, we continue to build up COREF's portfolio with high quality assets across gateway cities in Japan, Singapore and now Australia.  The Australian office sector presents relative value, and our highly experienced local team has been able to capitalise on the window ahead of the post-COVID recovery to capture this opportunity.  CLI adopts a disciplined approach in pursuing assets that offer value to investors.  With ESG principles central to our investment process, we will continue to actively enhance our portfolio of assets to generate quality returns for our stakeholders."

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CapitaLand Investment Limited
Tags:Private Funds
Industry:Real Estate
Location:Singapore - Singapore - Singapore
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