Hong Kong’s Link REIT has taken a 49.9% interest in the Investa Gateway Office (IGO) venture from Oxford Properties for A$596m (€374m).

Oxford will own a 50.1% interest in IGO, which owns stakes in five prime office assets in the central business districts of Sydney and Melbourne, worth more than A$2.3bn.

George Hongchoy, Link’s CEO, said: “The Australian economy has been highly resilient and the investment in one of its highest quality prime office portfolios provides immediate scale, positions us strongly for the next cycle and aligning with our Vision 2025 growth strategy of diversifying and improving our portfolio mix in the region.”

Link said it would fund the investment through its internal cash resources and debt facilities.

Alec Harper, Oxford’s head of Australia, said: “Following on from the recent investment by Mitsubishi Estate into our Parkline Place project, today’s transaction further demonstrates the continued global institutional demand for prime and highly sustainable office product.”

Harper said Oxford would redeploy capital from the transaction into its prime office develop-to-core pipeline and build-to-rent develop-to-core investment strategy in Australia. 

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