Charter Hall Social Infrastructure REIT buys Adelaide complex and other APAC REIT news

ASX-listed Charter Hall Social Infrastructure REIT has acquired the South Australian Emergency Services Command Centre development in Adelaide for a total consideration of A$80m.

The A-REIT purchased the project for A$23m and will fund the remainder of the development to a total value of A$80m, with a 5% coupon received during construction.

The complex will comprise a 5,532 sq.m. free-standing office building, a 1,000 sq.m. freestanding warehouse, a 1,468 sq.m. adjacent hardstand, and an adjacent six-level car park.

South Australian Emergency Services Command Centre
South Australian Emergency Services Command Centre
Once completed, the property will be mostly let to the SA government and occupied by four Government emergency services agencies on a 15-year lease, with fixed 2.5% annual rent escalations and two five-year options.

“Adelaide is a market Charter Hall knows well with a long history of developing in the city, most recently having completed the $251m development of the GPO Exchange,” said Charter Hall Group managing director and CEO David Harrison.

Charter Hall Social Infrastructure REIT shares closed flat at A$3.06 on Wednesday.

Daiwa Office sells Tokyo office for ¥2.5bn

Tokyo-listed Daiwa Office Investment Corporation has offloaded a Tokyo office for ¥2.53bn, as it recycles assets to fund new projects like its Nihonbashi-Bakurocho 1-Chome development.

Daiwa Office sold the 2,595 sq.m. Daiwa Shimbashi 510 property, making a ¥330m gain on the asset’s book value, as of end-May 2020.

The company said the 46-year old property needed to be redeveloped to compete with properties in the surrounding area and meet current standards.

Daiwa Office said the divestment was a reasonable outcome, since the redevelopment would have had a significant impact on the J-REIT’s business performance.

Shares in Daiwa Office finished trading 2.86% higher at ¥648,000 on Wednesday.