OUE REIT told the Singapore Exchange on 23 October that it will buy an approximately 50% interest in Salesforce Tower, the 263-metre, 55-storey office building at 180 George Street in Sydney's Circular Quay, from the Ping An Real Estate Capital Holding group. The headline price is A$864.0 million, about S$774.1 million at the exchange rate OUE REIT used. That is the same figure as Knight Frank's independent valuation of the stake as at 30 September 2026.

The trust did not go looking for this deal in the open market. It already owns 19.9% of the tower, a purchase completed on 16 March 2026, so the deal takes its interest to about 69.9%. Under the co-owners' unitholders agreement, a seller must first offer its stake to the other joint owners, and OUE REIT's buying entities were allocated all of Ping An's interests. Completion depends on approval from Australia's Foreign Investment Review Board. Unitholder approval is not required, and the announcement gives no completion date.

The price is the more interesting number for anyone tracking Sydney office values. The headline price implies about A$1,728 million for the whole tower. The March deal implied A$1,795.0 million, so in seven months the reference value has come down by 3.7%. OUE REIT does not disclose a yield on the purchase.

The cash OUE REIT hands over is smaller than the headline price, and the reason is structural. The trust is buying units in the trusts that own the building, not the building itself, so the debt and other net assets inside those trusts are netted off. That leaves an estimated purchase consideration of A$461.4 million, subject to adjustments after completion. With stamp duty of A$47.5 million for this deal, the manager's acquisition fee and other costs, OUE REIT puts the total acquisition cost at A$539.3 million. That total uses A$67.2 million of duty, the combined figure for this deal and the March purchase.

Funding is a mix of new borrowing and an asset sale at home, the proceeds from selling Crowne Plaza Changi Airport. Aggregate leverage, 41.5% at 30 June 2026, would rise to 48.5% on the deal alone, 45.3% after the hotel sale and 42.8% if the manager also issues up to S$150 million of perpetual securities. On first-half 2026 figures, distribution per unit rises from 1.26 to 1.30 Singapore cents, a 3.2% gain. On full-year 2025 figures it falls from 2.23 to 2.21 cents.

The building is young and full. Salesforce Tower was completed in November 2022 and was 100% occupied at 30 September 2026, with tenants including Salesforce, TikTok and JLL.

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Sources

Sources read 26 October 2026.