Mergers & Acquisitions
OUE REIT Lifts 180 George Street Stake to 69.9% With A$864 Million Sydney Deal
By News Desk ·
Key takeaways
- OUE REIT accepted a pre-emptive offer for an additional 50.0% interest in 180 George Street at an agreed property price of A$864.0 million.
- The acquisition lifts OUE REIT's interest in the Sydney tower from 19.9% to 69.9% and is expected to be 3.2% DPU-accretive on a pro forma basis.
- The estimated total acquisition cost is A$539.3 million, funded through debt and partial net proceeds from the Crowne Plaza Changi Airport divestment.
OUE REIT has accepted a pre-emptive offer to acquire an additional approximately 50.0% interest in 180 George Street, Sydney, at an agreed property price of A$864.0 million, lifting its stake in the tower to about 69.9%. The manager announced the proposed acquisition on October 23, 2026, according to TradingView.
OUE REIT's A$864 Million Sydney Purchase
OUE REIT is a Singapore-listed real estate investment trust that owns office, retail and hospitality assets in Singapore and holds a 19.9% interest in 180 George Street, also known as Salesforce Tower. The 55-storey Circular Quay tower, completed in November 2022, is Sydney's tallest office building and includes the detached four-storey Jacksons on George building.
The agreed property price of A$864.0 million, or about S$774.1 million, is 3.7% below the agreed price for the 19.9% stake acquired on March 16, 2026 on a comparable 100% property-value basis. After debt and other net assets attributable to the 50.0% interest, the estimated purchase consideration is A$461.4 million, or about S$413.4 million. The estimated total acquisition cost is approximately A$539.3 million, or about S$483.2 million, to be funded through debt financing and proceeds from the Crowne Plaza Changi Airport divestment.
The future of trading reported that completion requires Foreign Investment Review Board approval. The property was 100% occupied as of September 30, 2026, with a weighted average lease expiry of 5.2 years by net lettable area and tenants including Salesforce, TikTok and Jones Lang LaSalle.
What akta.pro Records Show on OUE REIT
According to akta.pro company records, OUE REIT completed the acquisition of a 19.9% interest in Salesforce Tower, Sydney for A$357.2 million in March 2026, its maiden entry into the Australian market. The same records show the proposed divestment of Crowne Plaza Changi Airport for S$500 million, a 1.3% premium to independent valuation, to a Tokyo Century and OUE Limited joint venture, with proceeds earmarked for S$20 million of special distributions. OUE REIT's portfolio comprises seven properties, and its total assets under management were S$6.1 billion as of December 31, 2025.
OUE REIT's Path to the Sydney Tower
OUE REIT reported a 28.6% year-on-year rise in distribution per unit to 1.26 Singapore cents for the first half ended June 30, 2026, according to PR Newswire APAC, driven by stronger hospitality performance, income contribution from the Salesforce Tower acquisition and a 16.6% year-on-year reduction in finance costs. The Business Times reported in June 2026 that OUE REIT was selling Crowne Plaza Changi Airport for S$500 million to a Tokyo Century and OUE Ltd joint venture, a 1.3% premium to independent valuations. In October 2026, PR Newswire APAC reported that OUE REIT retained its four-star GRESB rating for the third consecutive year with a record score of 88.7 points.
OUE REIT's Next Steps on the Deal
Mr Han Khim Siew, Chief Executive Officer of the manager, said, "The Proposed Acquisition advances Phase 3 of OUE REIT's portfolio transformation and reinforces our track record as a disciplined capital allocator." The Crowne Plaza Changi Airport divestment is to be completed on October 30, 2026.