Stake in CBD Westfield office fetches $226m
Hong Kong-listed Link REIT has divested a stake in its maiden Australian asset – bought months before the COVID lockdown.
The interest in 100 Market Street sold for $226 million.
Aware Super is the buyer.
Over 10 levels, the building contains 28,339 square metres of high-end space.
Above and integrated with Westfield Sydney, it is fully occupied; tenants include ASIC, the Future Fund and SCentre Group.
Cushman & Wakefield’s Josh Cullen and Knight Frank’s Rob Sewell were the agents.
Link will continue to provide management services.
Peak purchase
Link Asset Management paid $683m for 100 Market St, settling in January, 2020, two months before the COVID lockdown, which devastated the office market.
The Sydney CBD office vacancy rates was at a cyclical low 3.9 per cent, according to the Property Council of Australia’s bi-annual Office Market Report.
That purchase reflected a 3.9 per cent yield.
Blackstone was the seller.
It picked up the property six months earlier with two others from Scentre for $1.52 billion (continues below).
Also known as the CBD Westfield complex, the NABERS Energy rating is 5.5 star.
“100 Market Street is a high-quality CBD office asset that aligns strongly with our long-term investment strategy and commitment to delivering sustainable value for our investor, Aware Super, and its members,” Aware Real Estate head of investments and capital transactions, Pete Carstairs, said.
“We are pleased to partner with Link, whose experience with the asset complements our own investment and asset management expertise,” according to the executive.
“Together, we look forward to stewarding the future of this asset through a collaborative partnership focused on long-term performance, tenant outcomes and value creation,” he added.
Aware Super head of property Alek Misev said the acquisition reflected the fund’s confidence in Sydney’s prime office sector.
“This was a rare opportunity for the Aware Real Estate platform to acquire a high-quality Sydney CBD office asset with cornerstone government and corporate tenants,” according to the executive.
“Ideally located near transport and retail amenities, the building is well positioned to remain in demand through market cycles while appealing to a diverse range of businesses,” he added.
Aware Real Estate’s directly owned office portfolio includes 145 Ann Street in Brisbane and 207 Pacific Highway, in Sydney’s St Leonards.
Including industrial, retail and mixed-use sectors, it controls assets worth c$2.5b.
“The acquisition of 100 Market Street is strongly aligned with our focus on building a portfolio of high-quality assets that can deliver sustainable outperformance for Aware Super and its members,” Aware Real Estate chief executive, Tracey Whitby, said.
“It is the type of investment we seek to make on behalf of Aware Super’s members – high conviction, well located and supported by strong long-term fundamentals,” she added.
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