GPT Group has put to market its 25% stake in Sydney’s Governor Phillip and Governor Macquarie Towers, a stake valued at A$586m (€353m) at 30 June 2020.

Known as 1 Farrer Place, it is the largest building complex in Sydney to come to market in the wake of the coronavirus pandemic, which has seen a number of office buildings changed hands in recent weeks.

Before a sale can be executed, GPT has to first offer the stake to a Lendlease-managed office fund, which owns a 25% stake in the towers through a vehicle jointly owned with GPT. If Lendlease declines, the stake will be offered to Dexus, which owns the remaining half of the complex, which has 84,000sqm of space spread across the two 64-level towers.

Should a sale be successful, GPT expects to be able to re-invest the proceeds into new opportunities, including the Group’s A$1bn logistics development pipeline.

GPT’s chief executive, Bob Johnston, said: “It is rare for opportunities of this quality to be offered, and we expect it will be well sought-after by both domestic and off-shore investors.”

The GPT announcement came as Dexus today exchanged a A$273m contract with a private Hong Kong investor for 60 Miller Street, an office building in North Sydney. Dexus said the price was 3% above its book value at 30 June 2020.

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