PGIM Real Estate has partnered with Anton Real Estate Partners to acquire a 20,150sqm office building on the east coast of Australia.
IPE Real Assets understands that PGIM Real Estate’s Asia Pacific value-add strategy and the Proprium Capital Partners subsidiary have paid around A$250m (€151.3m) to buy the 13-storey, 20 Bridge Street office building in Sydney’s central business district.
The companies said the departure of anchor tenant Australian Securities Exchange will allow the partnership to implement a strategic upgrade programme, focusing on enhancing the plaza arrival experience with customer service and hospitality offerings.
Steve Bulloch, the head of Australia for PGIM Real Estate, said: “The office sector in Australia has been more resilient than most global office markets, but we see a similar trend in terms of the flight to quality.
“The asset’s strong location, coupled with the significant repositioning plan, allows for us to re-present a high-quality asset back to the market but at competitive rents compared to the nearby premium towers.”
Bulloch added that after strategic investments in Australian logistics and residential assets last year, they carefully considered their return to the office sector and believe now is the right time.
Tony Martin, partner at Anton Real Estate Partners, said: “Delivering significant enhanced value to 20 Bridge Street through our comprehensive repositioning and upgrade programme is only part of the story.
“With this prime office building, we have a unique ability to meet the requirements and demands of corporate tenants in Australia, which are really focused on a ‘flight-to-quality’ strategy for their offices, demanding best in class space, operational standards, sustainability, amenities and services and all in first class locations.”
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