An AMP Capital fund has sold its half stake in a Sydney office tower to M&G Real Estate Asia for A$575m (€357m).
The British investor will co-own 200 George Street in Circular Quay with Mirvac, which developed the tower and brought in the AMP Capital Wholesale Office Fund (AWOF) as co-investor in 2016.
An M&G spokesman told IPE Real Assets that M&G was unable to comment at this point.
When approached, Mirvac said it had utilised its pre-emptive rights to secure “an aligned capital partner” to co-own 200 George Street, declining to name the partner.
Mirvac’s CIO, Brett Draffen, said: “This transaction demonstrates the confidence in Sydney’s CBD office market, with ongoing demand for high-quality, modern, well-located assets.
“It is also another example of Mirvac’s ability to create opportunities for its aligned capital partners, and validates the strength of our existing relationships.”
In February 2021, AMP Capital began a sale process for its 50% holding in the property. It is believed that Blackstone, Nuveen, Allianz, Hong Kong’s Link REIT, and Lendlease were among the bidders.
The exit from the property was planned as part of AMP Capital’s asset recycling strategy to free capital to fund its pipeline of developments.
Kit Georgeos, AWOF fund manager, told IPE Real Assets: “At a significant premium to book value, the sale of 200 George Street is a fabulous result for the fund and its investors.”
To read the digital edition of the latest IPE Real Assets magazine click here.
No comments yet