AMP Capital has sold a logistics facility on behalf of its client, Swiss Re, for A$130.1m (€83m) to the Lendlease-managed unlisted Australian Prime Property Fund – Industrial.
The 35,000sqm facility in Eastern Creek, in Sydney’s West, is the national distribution centre for clothing retailer Best & Less.
When approached, a spokesperson for AMP Capital declined to comment on the identity of its client.
But IPE Real Assets understands that AMP Capital in March 2019 acquired the distribution centre for A$90m under a mandate from Swiss Re.
In 2017, the Swiss institution conducted a “beauty parade” of Australian managers before giving a mandate, believed to be for up to A$700m, to AMP Capital to invest in core and value-added properties.
AMP Capital assembled a portfolio of assets for its client, including the Best & Less distribution centre, and four A-grade office buildings in the central business districts of Sydney and Melbourne. It is believed the portfolio is currently valued at not less than A$1bn.
The source told IPE that three other assets in the portfolio, including 32 Walker Street in North Sydney, and 50 and 60 Carrington Street in Sydney CBD, are under due diligence.
Swiss Re has a 50% stake in the two Carrington Street buildings, purchased for A$500m. The location is undergoing a rejuvenation, with completion of the A$2bn-plus Wynyard Place by Brookfield.
As with the distribution centre, said the source, the office buildings were being “hotly contested”.
The portfolio also includes an office tower in Central Melbourne, at 469 La Trobe Street, acquired for A$160.5m in 2017. It was recently renovated is fully leased.
“AMP Capital is selling into a strong market,” said an industry observer.
“Interest across the board is significantly above the purchase price of these assets. It is going to be a good outcome for Swiss Re. The distribution centre achieved almost a 45% capital gain.”
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