Billionaire toy maker sells another office for a loss
Billionaire toy maker Francis Choi has sold another Sydney CBD office for less than the price paid last cycle.
The outgoing ASX headquarters, the Exchange Centre, 20 Bridge Street, has just traded for c$250 million – a 7-7.5 per cent net passing yield, according to sources.
The buyers are PGIM, an asset management subsidiary of New York listed Prudential Financial and Anton Real Estate Partners, an arm of Proprium Capital Partners, spun out in 2013 with the team that led the Morgan Stanley Real Estate Special Solutions Division.
It is the first time the two have paired.
A major upgrade is planned focusing on the foyer and user experience once the ASX vacates for Investa and Manulife Investment Management’s nearby 39 Martin Place this year.
$85m drop
Developed in 1999 on an 1850 square metre site at the north west corner of Pitt St, the Exchange Centre contains 20,150 sqm of A-grade area over 13 floors (with above-average floorplates of c1500 sqm).
There are also 34 car parks (story continues below).
Mr Choi, Hong Kong’s 11th richest person, picked it up in late 2016 via his company, Early Light International – outlaying $335m – a 4.5pc return.
The disposal was managed by Knight Frank’s Linda Zhu, Paul Roberts, Ben Schubert and Dominic Ong, who closed an expressions of interest campaign in early September.
The deal comes four months since we reported ELI sold 1 Castlereagh St for $196.4m to SLMC Australia, a joint venture with Mainboard listed Metro Holdings and Singapore’s Sim Lian – Metro Capital Pte Ltd.
That office cost $220m from Blackstone in 2019 with another c$24m invested on a renovation.
With 12,418 sqm over 23 levels, including ground floor retail, it was 15pc vacant.
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