A subsidiary of the Straits Trading Co. has entered a deal to acquire a parcel of land in South Australia for A$7.6 million, or around S$7.2 million, the company said in a filing to SGX Monday.
The 37,970 square meter land parcel will be developed into a 14,719 square meter mixed-use office and warehouse facility with a development cost of A$44.3 million, or around S$41.9 million, Straits Trading said.
The facility has a pre-commitment from a blue-chip tenant on a long-term lease, the filing said.
The project is located around 15 kilometers north of Adelaide’s central business district, Straits Trading said.
The acquisition will be via a wholly owned subsidiary of the Trust, which is itself an 80 percent-owned subsidiary of Straits Real Estate Pte. Ltd. (SREPL), the filing said.
“The company has previously announced the acquisition of a portfolio of five logistics properties across Australia via SREPL. The proposed acquisition of the land parcel and planned development marks the continuous expansion of the logistics portfolio,” Straits Trading said.
The project cost is expected to be paid by internal funds and bank borrowings.
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