Oxford Properties has sold an office tower in North Sydney to Abacus Property Group for A$311m (€188m).
The sale of 99 Walker Street brings to a close Oxford Properties’ programme of asset disposals from a portfolio it inherited through the A$4.4bn takeover of the listed Investa Office Fund late last year.
Agents said the final tally of the disposals by the Canadian investor was A$3.2bn.
After taking control of the now-privatised Australian office trust, since renamed Oxford Investa Property Partners, the new owner proceeded to weed out assets that it considered non-core to its portfolio.
Its strategy was to recycle the proceeds into new projects in Australia, including a major redevelopment in central Sydney.
In September, Oxford Properties, CPB Contractors and Grocon, won the rights to develop an office and build-to-rent project in Sydney that would have an end value upwards of A$1bn.
Abacus, which this week dropped its joint bid with Charter Hall Group for Australian Unity Office Fund, bought the building against stiff competition from other buyers.
Abacus managing director, Steven Sewell, said the transaction aligned with his company’s strategic priority of acquiring assets in specific locations.
He said the office tower was located in an area where amenities and infrastructure improvements would results in strong tenant demand.
“The acquisition demonstrates our solid progress as Abacus transitions to a strong asset-backed, annuity-style business model,” said Sewell.
The sale is the second in North Sydney this week. CBRE Global Investors bought the headquarters for Zurich Financial Services Australia, now under construction, on behalf of a German investor, for about A$350m.
