This article is from the Australian Property Journal archive
THE Australian Securities Exchange will finish up at 20 Bridge Street after a quarter of a century in a move that will deal a major blow to the foreign investor owner who paid $350 million for the prized asset.
The ASX will relocate to Investa and Canadian Manulife’s 39 Martin Place, which will feature iconic events such as bell-ringing ceremonies and market trading data. It will also have exclusive sky signage on the façade of the building.
The lease means joint owners Investa Commercial Property Fund (ICPF) and Manulife have secured 85% pre-commitment, after signing law firm Ashurst for one-third of the space in February last year.
ICPF and Manulife picked up the development in 2021 for $800 million. The pair’s offer was Macquarie’s second choice after industry funds giant ISPT pulled the plug on a $950 million purchase.
Although it is unclear why ISPT backed out of the deal, a year later the trust would announce it was focussing on healthcare and life sciences sector.
The upcoming move comes as the ASX’s lease at 20 Bridge Street is due to expire and closes the chapter on a quarter of century history at the property.
The loss of the ASX will come as a major blow for Hong Kong owner Early Light International, which purchased the building from Malaysian pension fund Kumpulan Wang Persaraan in 2017 for around $330 million and $350 million.
KWAP bought the asset for a bargain price of $185 million in 2011 from lender BOS International, after it called in the debt owed by Record Realty.
Record Realty had paid a whopping $238 million five years earlier, when it bought 20 Bridge Street from German fund Deka Immobilien.
The ASX’s move to 39 Martin Place will not be a new relationship between Australia’s primary securities exchange operator and Investa. In fact, Investa used to manage 20 Bridge Street on behalf of KWAP and was well aware that the ASX’s lease was due to expire.
Currently under construction as part of the Martin Place integrated station development by Macquarie, 39 Martin Place is expected to be completed in Q3 2024 and will provide 30,000 sqm of office space across 28 levels, as well as 2,000 sqm of retail.
Designed by acclaimed Sydney architect, Alec Tzannes, the building is targeting a 6 Star Green Star rating, a 5.5 Star NABERS Energy rating, and a NABERS water rating of 3.5 Stars.
ICPF fund manager Brendan Looby said with 39 Martin Place now approximately 85% pre-committed, Manulife and ICPF are really pleased to welcome ASX to its roster of blue-chip clients, including Ashurst.
“Strong interest from leading corporates in 39 Martin Place demonstrates the flight to quality trend continues to be a key driver of market demand in Sydney,” he added.
Kenneth Tsang, head of asset management, real estate Asia Pacific, Manulife Investment Management, said built above the new Martin Place metro station and in immediate proximity to retail, hospitality and wellness options, 39 Martin Place offers an ideal mix of accessibility and convenience.
