Macquarie Group revives Sydney skyscraper sale
Investment bank Macquarie Group is again negotiating to sell an under-construction skyscraper in the heart of Sydney that it is developing above the new Martin Place metro station that it was close to selling for almost $1bn before the coronavirus crisis struck.
Talks have been rekindled on the under construction 39 Martin Place with it now in line to be purchased by a consortium, guided by local office funds manager Investa Property Group.
While the parties have declined to comment, the play also shows the critical role of offshore capital with Investa thought to have partnered with an international pension house.
An earlier round of negotiations with superannuation-backed property fund ISPT, that would have seen the complex trade for as commercial property values peaked, collapsed as the crisis hit, recalibrating values and the latest talks are closer to the $800 million mark.
A deal on the Martin Place tower could show the dramatic impact of the crisis on office developments that carry substantial leasing risk with the prime tower needing to find tenants to move in when it is finished in 2024.
Just this week Dexus sold a tower at 45 Clarence Street, Sydney, for $530 million, in line with its value last December via CBRE. That deal showed well leased buildings remain attractive and it was picked up by Peakstone, a Singapore headquartered manager of Asian capital.