Singapore’s Keppel Reit has announced a significant step in diversifying its portfolio, acquiring a 75% interest in Top Ryde City Shopping Centre, a major suburban retail mall in Sydney, Australia.

The deal is valued at A$393.8 million ( US$254.83 million ) and marks Keppel Reit’s first retail-only asset, expanding beyond its traditional focus on office properties.

Located in the growing City of Ryde, Top Ryde City is a freehold shopping centre strategically positioned along a major road artery connecting north and south Sydney. It’s part of a mixed-use development and spans over 77,000 square metres, with nearly 2,800 car park spaces.

What makes this asset attractive is its resilient tenant base – about 77% of rental income comes from non-discretionary retailers, such as supermarkets and essential goods stores.

Major tenants include ALDI, Woolworths, Coles, Big W and Kmart. With a strong occupancy rate of 96% and a healthy average lease length of 4.2 years, the mall offers stability and consistent income.

Keppel Reit expects the acquisition to boost distribution per unit by 1.34% and generate a 6.7% initial yield once fully leased. The move comes as suburban malls in Australia continue to perform strongly, supported by long-term population growth and resilient consumer spending.

Once the deal is completed in early 2026, Keppel Reit’s total portfolio value will rise to S$9.8 billion ( US$7.55 million ), with assets across Singapore, Australia, South Korea and Japan.

“This acquisition strengthens our portfolio with a quality retail asset in a high-growth area,” says Chua Hsien Yang, the real estate investment trust’s CEO. “It brings balance and diversification to our existing commercial-focused portfolio.”