YTL Pacific Star, the Manager of Starhill Global REIT said on Wednesday that Starhill Global REIT plans to acquire David Jones Building in central Perth, Australia for A$114.5 million (about S$148.0 million) from Centro, a fully integrated real estate company based in Australia.
The company added that a heads of agreement has also been entered into with the trustee of Starhill REIT of Malaysia, to indirectly acquire Starhill REIT’s interests in Starhill Gallery and Lot 10 Shopping Centre on Bukit Bintang, Kuala Lumpur’s main shopping street, through an asset backed securitisation (ABS) structure, for a total of RM1,030 million (about S$423.3 million).
The proposed Australian acquisition is expected to be completed in January 2010 and will be funded by a combination of debt and proceeds raised from Starhill Global REIT’s recent rights issue.
The acquisition is expected to be accretive to Starhill Global REIT’s distribution per unit (DPU). The pro forma financial effect of the acquisition on the DPU for the financial year ended 31 December 2008 is an additional 0.22 Singapore cents per unit.
With the signing of the heads of agreement for the acquisition of the properties in Malaysia, both parties agree that they shall negotiate in good faith and use their best efforts to finalise the definitive agreements in relation to the properties. Further details will be announced at the appropriate time in due course.
Source: Business Times, 18 Nov 2009
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