GPT sells Lendlease quarter of 1 Farrer Place for $584.6m

Lendlease and Dexus now equally co-own Sydney’s 1 Farrer Place. The latter sold a quarter stake of nearby Grosvenor Place for $925m last month.

The GPT Group has sold its quarter interest in a multi-building Sydney CBD office investment to a co-owner, the Lendlease managed Australian Prime Property Fund Commercial, which now controls half.

The vendor’s stake in 1 Farrer Place cost $584.6 million – the June 30, 2020, book value.

Dexus owns the balance.

The property contains the Governor Phillip Tower and Governor Macquarie Tower – all up c84,000 square metres of lettable office area – and five Phillip Street terraces.

As part of the ownership structure, Lendlease had a pre-emptive right over the other partner, to buy GPT’s share when it decided to sell a month ago.

Settlement is due in a fortnight.

“The sale of Farrer Place capitalises on the strong demand and rare opportunity to purchase landmark office assets,” GPT chief executive officer Bob Johnston said (story continues below).

Governor Phillip Tower’s foyer.

“The proceeds from the sale will be reinvested into new opportunities including logistics acquisitions and the Group’s development pipeline, which we believe will generate superior long term returns for investors,” he added.

The Sydney asset has delivered the owners a return in excess of 12 per cent per annum since 2015.

Last month Dexus sold a half share of the nearby Grosvenor Place office for $925m to Chinese Investment Corporation which already controlled 25pc.

That commercial property transaction looks possible to be Australia’s biggest for 2020.

Also this week Dexus paid Charter Hall $127.6m for three industrial investments and two blocks – on land all up of 11.75ha – in Melbourne’s Truganina.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of