Singapore’s Soilbuild chasing stake in North Sydney’s Coca-Cola Place tower
Soilbuild is chasing a stake in 40 Mount Street, North Sydney.
Singaporean company Soilbuild Group Holdings is circling a one-quarter stake in North Sydney’s Coca-Cola Place in a deal that would value the entire tower about $360m.
The move comes as more large towers trade in North Sydney, signalling renewed interest in the area as an investment destination, however transactions have been at a lower pricing than what once would have prevailed.
The 25 per cent interest in the 40 Mount Street asset is being sold by British funds manager M&G Real Estate, and is expected to show a yield of about 7 per cent.
Soilbuild is an integrated property group with a record of building, developing and managing residential and business properties, mainly in Singapore. It includes a real estate investment trust, Soilbuild Business Space REIT, which was formerly listed on the Singapore bourse and was privatised by tycoon Lim Chap Huat and Blackstone in 2021.
M&G had acquired a 25 per cent stake in the North Sydney office building for $109.5m in 2018. It was bought from South Korea’s National Pension Service, which was represented by US firm PGIM Real Estate.
The remaining 75 per cent interest in the building is now held by Investa’s flagship commercial property fund.
The landmark A-grade complex comprises about 28,340sq m over 19 levels and is in a prime location. The building takes in sweeping Sydney CBD and harbour views and is near the new Sydney Metro station at Victoria Cross as well as the North Sydney train station.
CBRE’s James Parry, Mitch Noonan and Flint Davidson are handling the sale but declined to comment.
The office tower is set on a 2467sq m corner site and its replacement cost is estimated to be 50 to 60 per cent above current capital values in North Sydney. The Mount Street block is 94 per cent leased with a five-year weighted average lease expiry.
The building is the Australian headquarters of Europacific Partners (Coca-Cola), which has been in the tower since it was finished in 2010, and makes up the majority of net income.
The North Sydney market is being driven by the development of Lendlease’s $1.2bn Victoria Cross Tower, with increasing leasing in that block expected to lower vacancy rates.
Early Light’s Northpoint Tower is also thought to have attracted a bidder with an offer worth about $400m.
Coca-Cola Place has strong environmental credentials, including 6.0-star Green Star design, 5.5-star NABERS Energy and 4.5-star NABERS Water.
