M&G Real Estate has acquired a further quarter stake in a Sydney office tower for about A$300m (€187m) from the Investa Commercial Property Fund (ICPF).
M&G is currently a co-owner with ICPF alongside China Investment Corporation, which holds a 50% stake in the building at 400 George Street.
The building was M&G’s first co-investment with ICPF when they jointly acquired the asset in 2006. M&G has another co-investment with ICPF in a North Sydney commercial building, bought in 2018.
Penny Ransom, Investa’s group executive and head of investment management, said the sale had crystallised another “attractive” return to unit holders over the hold period.
ICPF fund manager Brendan Looby said: “It aligns with ICPF’s strategy to recycle capital into its development pipeline to continue to enhance the quality of the portfolio with new-generation assets that are attractive to tenants.”
The sale of 400 George Street is part of its asset recycling programme to release up to A$900m currently locked in its ICPF portfolio. It is freeing the capital to fund its pipeline of projects, including sites in Brisbane, Sydney and Melbourne.