Keppel REIT sells Sydney CBD asset

Keppel REIT sells Sydney CBD assetKeppel REIT’s A Grade asset at 77 King Street in Sydney’s CBD has sold for $160 million, 38 per cent above its 2010 purchase price of $116 million, to a subsidiary of funds giant Invesco.The purchaser, ARE Noble Pty Ltd, is a wholly-owned subsidiary of Invesco Asia Core Fund, which has been eyeing off the asset since October 2015.The A Grade office building, which includes a separately owned Apple Store on George Street, comprises 10,610 sqm of office space across 18 levels, as well as two basement levels of retail space totaling 1227 sqm and a 773 sqm childcare centre. Tenants include tech giants Apple, Facebook and Capgemini.The building’s sustainability features, such as chilled beam air-conditioning, have earned it a 4.5 Star NABERS rating. Keppel REIT is one of Singapore’s largest real estate investment trusts, with assets under management of approximately $8.4 billion. The trust’s Australian assets include half stakes in 8 Chifley Square in Sydney, 8 Exhibition Street in Melbourne, 275 George Street in Brisbane, and the office tower and annexe on the Old Treasury Building site in Perth.Keppel REIT has said it intends to use the sale proceeds to repay existing debt, fund general corporate and working capital purposes, and fund future investments.