PGIM Real Estate has acquired a 75% interest in the retail and commercial component of the York&George mixed-use project, in Sydney’s central business district.

The US investment manager declined to disclose the price, but industry sources said the asset is worth around AUD200m (€125.3m).

The transaction lifts PGIM Real Estate’s equity exposure to Australian real estate to around AUD650m alongside various debt exposures.

York&George is an amalgamation of four buildings acquired by Fife Capital between 2008 and 2009 and involves restoration of heritage buildings on the site.

The street-level retail space is already occupied by telecoms companies, Vodafone and Optus. The balance of the space will be completed in stages with final completion scheduled in late 2018.

Steve Bulloch, PGIM Real Estate’s head of Australia told IPE Real Assets: “We like the central business district high street retail opportunity in Sydney and this asset in particular.” 

Bulloch said PGIM Real Estate continues to look for selective opportunities in Australia for the various funds that it manages.

The York&George project also includes a 100% pre-sold, 199-apartment residential tower. This does not form part of the transaction.