Japanese investment giants trade stake in Sydney’s tallest office
MEC Global Partners Asia is believed to be buying a minor stake in Sydney’s landmark Salesforce tower, which carried a speculated $2 billion end value last year.
The price of the deal, for 10 per cent, with Mitsubishi Real Estate Asia, which offered its 30pc interest last year, is as yet unknown.
Both parties are Japan based.
Ping An Real Estate and Lendlease remain backers in the office, part of the Sydney Place element of the $3b One Circular Quay project, taking shape since before COVID.
Another component – an Astoria Waldorf hotel – sold last year to Andrew Forrest for a speculated $520m.
Last week we reported a hospitality piece, the leasehold of the rebuilt Jacksons on Georges, was trading to Angela and Patrick Gallagher for c$20m.
A consortium including restaurateur Maurizio Terzini and hotelier Michael Broome was the vendor.
Stake in Sydney’s tallest tower selling
At 180 George St, Salesforce Tower, completed last year, is Sydney’s tallest office with 53 levels containing 59,916 sqm (story continues below).
MEC is believed to be seeking Asia-based backers for its purchase.
CBRE and Emerge Capital are representing Mitsubishi.
The price is believed to reflect a 5.5-6 per cent yield.
The deal comes two years since MEC via AsheMorgan acquired 60 Market St and the Metcare Centre retail complex beneath it, again in Sydney, from Blackstone and Mirvac.
AM also recently paid Dexus $290m for the half stake it didn’t control of 309 Kent St.
In a show of how fast office values have fallen, the pair traded the first 50pc in mid-2020 for $401m.
MEC, a diversified investment giant, also holds office assets in Barangaroo.
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