This article is from the Australian Property Journal archive
MALAYSIA’s second largest pension fund Kumpulan Wang Persaraan (KWAP) has sold the ASX headquarters in Sydney’s CBD to another overseas buyer for more than $330 million.
It is believed a Hong Kong investor, Shaw Foundation, has snapped up The Exchange Centre for around $330 million to $350 million – on a yield of 4%, setting a new record.
Investa manages the asset on the behalf of the fund and has confirmed the sale to Australian Property Journal.
“Following receipt of an executed contract on price and terms acceptable to the owner, Investa (on behalf of its client) confirms contracts have been exchanged with a buyer for the sale of the Exchange Centre, 20 Bridge Street, Sydney,” Investa said in a statement.
Located at 20 Bridge St, the property was put on the market in February this year with an asking price of at least $325 million. It was sold by Savills’ Simon Fenn, Ian Hetherington and Ben Azar. APJ contacted Savills for a comment.
KWAP bought the prized asset in 2011 for $185 million. The fund bought the property from lender BOS International, after it called in the debt owed by Record Realty.
Record Realty acquired the Exchange Centre from German fund Deka Immobilien in 2006 for $238 million on a yield of 6.02%.
The sale is part of KWAP’s revised strategy to focus its attention in Europe, particularly Germany and France.
In an interview with Malaysian media, the fund’s CEO Dato Wan Kamaruzaman Bin Wan Ahmad said the European countries was the KWAP’s preferred destination.
Following the sale, KWAP’s Australian portfolio includes:
- A 12-storey 19,028 sqm office building at 737 Bourke St in Melbourne (acquired in 2010 for $113 million);
- A 60% interest in a 16-storey 39,765 sqm office at 747 Collins St Melbourne (acquired in 2013 for $167.50 million)
- 25-storey 24,978 sqm office at 179 Turbot St Brisbane (acquired for $172.3 million)
- A 24,978 sqm industrial property at 133 Lenore Drive, Erskine Park in Sydney (acquired in 2014 for $75.13 million)
- A 50,406 sqm industrial property at 1 Griffin Crescent Brendale in Queensland’s Moreton Bay region (acquired in 2014 for $73.84 million)
Completed in 1999, the Exchange Centre is a 13-level A grade office complex providing 20,347 sqm of net lettable area. The building is 45% occupied by the ASX which recently extended their lease to June 2028.
The building boasts an occupancy rate of 96% with a weighted average lease expiry over seven years.
Fenn had said the high profile asset is only one of six buildings valued at over circa $200 million and which is 100% owned within the CBD core.
The property will also benefit from the revitalisation of the Quay precinct – including developments by China’s Dalian Wanda, Poly Group, AMP Capital, Lend Lease, Mirvac as well as Brookfield’s $2 billion Wynyard Place development.
Australian Property Journal
