Ascendas Real Estate Investment Trust has bought a suburban office park in Sydney for A$289m (€180m) from AMP Capital.

The complex of three buildings is located at Thomas Holt Drive in Macquarie Park, Sydney’s secondary commercial centre, 13km north from the central business district.

It is one of four office parks developed and owned by the AMP Capital’s institutional Diversified Property Fund.

AMP Capital fund manager Tom Green told IPE Real Assets: “The sale of 1-5 Thomas Holt Drive, Macquarie Park is a fantastic outcome for ADPF investors, capitalising on strong market conditions for suburban office assets.

“The transaction is in line with fund strategy to recycle capital into modern, next-generation office assets such as Quay Quarter Tower, which is on track for completion in 2022.”

William Tay, executive director and CEO of Ascendas Funds Management, said affordable satellite hubs such as Macquarie Park remained attractive for companies seeking to decentralise from the central business district.

The office parks had been refurbished in 2015 and 2016, and had received a high energy rating.

It is Ascendas REIT’s fifth suburban office acquisition in Australia and means Sydney will account for 48% of its Australian portfolio, Tay said.

The purchase price was in line with the independent market valuation as of 1 December 2020 and a 17% premium to book value.

Ascendas REIT will fund the purchase with proceeds from a capital raising, and debt facilities.

In September, it bought another office campus in Macquarie Park for A$167m in a fund-through arrangement with developers Frasers Property Industrial and Winter Property Group.