Aware Real Estate, the domestic property arm of Australian superannuation fund Aware Super, is acquiring a 50% stake in the 100 Market Street office asset in Sydney from Link Real Estate Investment Trust (REIT) for around A$226m (€139m), as the seller recycles capital back into its core Asia-Pacific retail portfolio.
Located in Sydney’s central business district, the fully-let 100 Market Street asset comprises 28,339sqm of net lettable area across 10 storeys.
Pete Carstairs, head of investments and capital transactions at Aware Real Estate, said: “100 Market Street is a high-quality CBD office asset that aligns strongly with our long-term investment strategy and commitment to delivering sustainable value for our investor Aware Super, and its members.
“We are pleased to partner with Link, whose experience with the asset complements our own investment and asset management expertise.”
Alek Misev, head of property at Aware Super, said: “The 100 Market Street investment by the Aware Real Estate platform demonstrates the fund’s continued confidence in the long-term strength of the Sydney CBD office market.
“Commercial real estate remains an important component of our portfolio, and Sydney continues to offer high-quality assets with strong tenant demand and enduring investment fundamentals. This acquisition aligns with our strategy of investing in institutional-grade real estate that delivers resilient, sustainable returns for our members over the long term.”
Link Asset Management, the manager of Hong Kong-listed Link REIT, said the disposal aligns with its strategy to recycle capital out of non-core assets, with proceeds earmarked for unit buybacks and reinvestment into its core Asia-Pacific retail portfolio.
Link still retains a significant presence in Australia, holding a portfolio of retail and office assets that includes interests in Sydney’s Queen Victoria Building, The Galeries and The Strand Arcade.
John Saunders, Link Asset Management’s executive director and CIO, said: “The transaction demonstrates our active portfolio optimisation and disciplined capital recycling approach, where we are going back-to-basics to focus on our strength in owning and managing retail assets in Asia-Pacific.
“The transaction allows us to reduce our exposure while establishing a new capital partnership and continuing to provide agreed management services that support the operation of the investment.
“We intend to use proceeds for both unit buybacks, subject to regulatory requirements and market valuation, as well as to reinvest into our core retail portfolio in APAC in line with our back-to-basics approach.”
Julian Menegazzo, Link Asset Management’s head of Australian investments, said: “This transaction brings together complementary strengths and long-term capital, positioning the asset to deliver enhanced performance on behalf of our investors.
“Link looks forward to working collaboratively with Aware Real Estate and together we are committed to delivering outstanding outcomes for our tenants.”
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