This article is from the Australian Property Journal archive
SINGAPORE’S Ascendas REIT has acquired its first suburban office property in Sydney’s Macquarie Park for $167.2 million on a 6.1% yield, looking to take advantage of the decentralising workforce trend and just a week after Keppel REIT paid $306 million for Pinnacle Office Park.
The trust has acquired the MQX4, to be developed at 1 Giffnock Ave Macquarie Park from joint venture partners Frasers Property Industrial and Winten Property Group.
MQX4 sits on freehold land of 3,308 sqm and on completion will comprise a nine-storey building with a total net lettable area of 19,384 sqm including 17,753 sqm of office and 1,631 sqm of retail space, as well as 204 car parking spaces.
The JV partners will provide a three-year rental guarantee from completion of the office building in the event of vacancy, with the provision for a capital adjustment dependent on securing leasing outcomes. Net property income yield for the first year is approximately 6.1%.
Ascendas Funds Management CEO William Tay said: “We are delighted to secure our first suburban office property in Macquarie Park, Sydney’s premier innovation location, and Ascendas Reit’s fifth suburban office asset in Australia,”
“We believe that decentralisation trends will continue to benefit Macquarie Park which has already attracted many leading companies who have set up their headquarters in the precinct,” Tay said.
MQX4 is one of four new buildings that will form the $750 million Macquarie Exchange, Australia’s first community business district and a new mixed-use destination occupying prime position at the Metro station entrance.
Macquarie Exchange is set to transform a 15,620 sqm site into 83,368 sqm of space (gross floor area) across the four buildings which will be connected by laneways and collaboration spaces, all integrated with a central community park.
The project is expected to generate approximately 600 jobs during construction and on completion, will be house over 7,000 employees. Designed by renowned architects Bates Smart, MQX4 at Macquarie Exchange is targeting a 6 Star Green Star Design & As Built rating and a 5.5 Star NABERS Energy rating. Additionally, a WELL Silver and Core rating and WIRED certification are being targeted. The project will provide 100% carbon neutral energy to all buildings within Macquarie Exchange.
Frasers Property Industrial CEO Reini Otter said the sale demonstrates the important role Macquarie Exchange will play in the future of the Macquarie Park employment precinct.
“Macquarie Exchange will reinvigorate Macquarie Park, enabling the precinct to fulfil its potential as a critical employment and innovation hub for the future, taking advantage of new and existing infrastructure. The sale of MQX4 to Ascendas Reit is in line with our capital management programme and shows the strength of market demand for what’s being created,” he added. “More innovation jobs are coming to Macquarie Park. Major employers like the pharmaceuticals industry have growth plans in the area. Macquarie Exchange will be the most important, sought-after location in the context of Macquarie Park’s exciting future.”
Winten Property Group development director Stuart Vaughan said Macquarie Exchange is ideally timed to meet the changing needs of a more mobile and potentially decentralised workforce.
“Infrastructure upgrades are improving connectivity to Macquarie Park and the area’s gentrification is enhancing the amenity in the area. Macquarie Exchange complements and optimises this investment by providing new employment and economic opportunities in a place like no other,” Vaughan said.
This is the second Macquarie Park office transaction in a week after Keppel REIT paid $306 million for Pinnacle Office Park on a net yield of 5.25%.
Keppel believes there will be greater demand for metropolitan accommodation in the wake of COVID-19 as more companies adopt a hub-and-spoke business model.
