‘King of Toys’ chases $400m payday in North Sydney as Dexus weighs tower options

Early Light International is selling 100 Miller Street, known as Northpoint Tower.

North Sydney could see more than $1bn worth of office sales as two more large owners weigh up selling prize towers as other disposals advance.

The market is being targeted by investors keen to benefit from the new Victoria Cross metro station opening that is creating renewed confidence despite high vacancy levels.

Deal-making is already picking up.

Superannuation fund-backed manager ISPT has a buyer on 100 Pacific Highway, at around the $230m mark, with the private Forza Capital in due diligence. Singapore fund manager Keppel is also chasing the Charles Sturt University campus in North Sydney for about $70m.

Dexus and its flagship wholesale fund may now rekindle a sale of the skyscraper at 100 Mount Street in North Sydney that came close to selling to US investment manager Hines for more than $600m.

The US group made a move on the tower late last year but a deal did not eventuate, partly as the market was awaiting more leasing progress on Lendlease’s Victoria Cross Tower.

The anchor tenant of the Dexus building, NBN, confirmed in January it was departing for the new development. It will occupy six floors or about 9000 sq m across levels six to 11 when it relocates in mid-2026.

The move gave clarity to co-owners Dexus and its Dexus Wholesale Property Fund and they have gone to real estate agencies for advice on a potential sale, industry players said. They are moving as investors show more interest in areas like North Sydney as city landlords have withdrawn some stock.

That complex has 35 levels of office space, with large floorplates up to 1300 sq m, and the space that comes up as the NBN departs could be sought after as some nearby buildings are slated to convert to residential use.

Dexus declined to comment but both the listed group and the DWPF are focused on recycling capital into higher returning opportunities, and the unlisted fund must also meet redemptions.

Elsewhere in North Sydney, Hong Kong tycoon Francis Choi is stepping up the sell down of his once $1bn local office empire by putting the Northpoint Tower skyscraper in North Sydney on the block for about $400m.

The move continues the billionaire’s dramatic exit from the local market where his Early Light International rapidly became a major player when his offshore business was flying high. China’s property markets have since soured and he is now chasing bargains closer to home.

Mr Choi, known as the King of Toys, has a fortune estimated at $US8.1bn, according to Forbes magazine, and he has trappings of wealth including an office with an aquarium and life-size statues of Roman warriors.

100 Mount Street, North Sydney.

The mixed-use 100 Miller Street has 40,000 sq m of floor space including offices, retail and a hotel, on a 5,000 sq m site.

It has 26,820 sq m of offices over 34 levels, with major tenants including Dynatrace Asia, Ferrero Australia, Holcim Australia and EG Group.

It also houses the Vibe Hotel, which has 187 rooms over eight levels, along with 4728sq m of retail space with tenants including NAB, Westpac, Woolworths, Australia Post, OPSM and Hungry Jack’s. The asset also has a six-level basement car park.

The property is being taken to the market by Knight Frank agents Dominic Ong and Rob Sewell.

In 2019, the tycoon picked up Cromwell Property’s half stake in the then $600m North Sydney tower. Buying Cromwell’s stake in the skyscraper gave him full control of the landmark. He had picked up an initial half stake from Cromwell’s one-time backer, South African group Redefine Properties, in 2018.

Cromwell overhauled Northpoint Tower after buying it with Redefine in 2013 for $287.7m.

Mr Choi has been selling other local assets at a loss as the office cycle has turned.

In February this year, Anton Real Estate Partners, the local unit of international real ­estate firm Proprium Capital Partners, struck a joint venture with American giant PGIM Real Estate to buy Sydney’s 20 Bridge Street from Early Light.

The pair paid about $250m for the building, which currently houses the ASX. Early Light paid about $335m in 2017 to buy the building from Malaysian pension fund Kumpulan Wang Persaraan.

In October last year, Early Light offloaded another Sydney CBD office block to Singapore’s Sim Lian–Metro Capital, for $196.4m. Early Light had forked out about $220m to buy the tower at 1 Castlereagh Street in from US private equity giant Blackstone in 2019 and revamped it.