International buyers close in on Sydney’s northern suburbs
Sydney’s northern suburbs have emerged as a drawcard for international property investors with more than $1 billion worth of office towers now in play.
The area is being targeted by major groups, including Britain’s M&G Real Estate and South Korea’s National Pension Service, and now The Zenith complex in Chatswood is poised to hit the market for more than $400 million.
In this latest play, co-owners Centuria Capital Group and global fund manager BlackRock have sought advice from agents about selling the Chatswood property that they picked up for $279 million in 2016.
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They have overhauled the two-tower A-Grade office building, completing more than 44,500sqm of leasing deals, taking the complex to full occupancy.
Tenants in the 44,271sqm towers include NSW government departments, a law firm, multinationals and a listed property group.
The towers have a weighted average lease expiry of about 4.5 years and last year drew some interest from Hong Kong’s Early Light International, but other players are also keen on the asset.
North Sydney, meanwhile, has already locked in its status as a key destination for property groups. Locals Dexus, Winten and Lendlease are developing and South Korea’s NPS is driving two major deals that will see about $800 million worth of towers change hands. The group, represented by US firm PGIM Real Estate, last month sold its half-stake in Coca-Cola Place in Mount St.
M&G Real Estate teamed up with Investa’s wholesale funds arm to buy stakes in the complex with the deal valuing the entire building at about $440 million.
M&G took a 25% interest in the building for $109.5 million and the Investa Commercial Property Fund lifted its interest in the tower from 50% to 75%. Spanning 28,500sqm over 21 floors, the building houses Coca-Cola Amatil and private tenants including Goodman Fielder.
This article originally appeared on www.theaustralian.com.au/property.
