SINGAPORE (Oct 31): The Hour Glass will pay A$32.8 million ($36.9 million) for a freehold retail and commercial office building in Sydney as it seeks to expand in Australia.

The luxury watch retailer will fund the acquisition using internal resources and bank loans, it said in a statement.

The six-storey property, with a net lettable area of 1,027 sq m, is fully leased out.

"The acquisition of the property is consistent with the group’s preferred business model of operating out of its retail property assets," The Hour Glass said.

"Identifying and acquiring prime luxury retail premises in choice locations where the group operates provides security of tenure."

The Hour Glass shares ended flat at $1.85 yesterday.