OUE REIT to buy 19.9% of Sydney’s Salesforce Tower for A$357.2M, boosting yields and Australian exposure.

OUE REIT has agreed to acquire a 19.9% stake in Sydney’s Salesforce Tower for A$357.2 million, with a net cost of A$195.5 million, expected to close in early 2026. The deal is yield-accretive, offering a 5.8% initial passing yield and boosting distribution per unit by 0.9%. The 55-storey building, 99.2% occupied, is in Sydney’s prime CBD, near major landmarks, and features a 5.5-year average lease expiry and a 6-star Green Star rating. Tenants include Salesforce, TikTok, and JLL. The acquisition diversifies OUE REIT’s portfolio, increasing its Australian exposure to 5.1%, while Singapore remains 94.9% of its value. Funding comes from debt and proceeds from the 2024 sale of Lippo Plaza Shanghai, raising leverage to about 40.2% but keeping net asset value stable at S$0.56.