ARA to buy Milligan's Workshop office complex in Sydney for AUD300m
ARA Asset Management is buying an office complex in an inner-city waterfront suburb of Pyrmont, Sydney, for around AUD300m (€188m), according to industry sources.
The Singapore-based manager is acquiring Workshop, currently under construction, from Milligan Group. The eight-storey building is due for completion at the end of this year.
An ARA spokesperson declined to comment on the pending transaction, but said: “The group is always exploring accretive investment opportunities and will make announcements upon entering any definitive agreements.”
The spokesperson added: “Australia is an attractive market for ARA due to its sound fundamentals, attractive yields and deep and liquid markets.”
Developer Milligan offered the campus-style office building for sale last October. The sale process was handled by Cushman & Wakefield.
French multinational advertising and public relations firm, Publicis Groupe, will be the anchor tenant, taking 10,000sqm on a 10-year lease.
The purchase will add to ARA’s series of big-ticket investments in Australia, including acquisitions on behalf of trusts that it manages, such as Singapore listed Suntec Reit.
These include the purchase of Southgate complex in Melbourne for AUD578m in 2016, 177 Pacific Highway in North Sydney for AUD413m in 2014 and 50% of Olderfleet in Melbourne CBD for AUD414.17m in 2017.
ARA in 2017 bought a 19.9% stake in the Australian-listed Cromwell Property Group from South African investor, Redefine, for AUD405.9m.
The ARA spokesperson told IPE Real Assets that Australian assets currently account for 9% of ARA’s managed assets.
As at the end of last year, the gross assets managed by ARA Group and its associates was around S$80.1bn (€52.14bn) across 23 countries.