Singapore-listed Ocean Sky International is acquiring an office building in Melbourne, Australia for A$21.83 million ($15 million), the company disclosed.
Ocean Sky said it has entered into a contract of sale to acquire an office building at 541 Blackburn Road, Mount Waverley, Melbourne. The property sits on a large freehold site area measuring 6,210 square meters with a 150-meter-long corner street frontage, offering significant future development potential.
The acquisition will be funded by a combination of internal resources and bank borrowings, Ocean Sky said.
The acquisition of 541 Blackburn Road is set to grow the Group’s source of recurring rental income alongside its existing investment property at 17 Tuas View Close, Singapore and further diversify the Group’s revenue.
The property, which recently underwent refurbishment works,is currently 100 per cent leased to a premium and diversified tenant mix with a robust weighted average lease expiry (“WALE”) of 3.83 years.
“We have been exploring investment opportunities in Singapore and the Asia Pacific region to seek diversified sources of revenue for sustainable long-term shareholder value. Following extensive due diligence, we believe the commercial property at 541 Blackburn Road presents significant value and long-term opportunities,” Ang Boon Cheow Edward, Executive Chairman and Chief Executive Officer of Ocean Sky, said.
Moving forward, Ocean Sky said it will remain disciplined and focused in its strategy to broaden its foothold in property development and investment in Singapore and the Asia Pacific region to deliver long-term sustainable growth and value for shareholders.
Ocean Sky International Limited is an investment holding company with an interest in civil engineering, construction and related services business, and the business of property development, investment and management.
In the real estate business, the firm is involved in development projects in both Singapore and Cambodia with Atlantic Sky Investment Pte Ltd, Pacific Sky Development Pte Ltd, and TSky Development Pte Ltd, its joint venture with Tiong Seng Holdings. – BusinessNewsAsia.com