This article is from the Australian Property Journal archive
SINGAPORE-listed CapitaLand Integrated Commercial Trust (CICT) has added 101-103 Miller Street and Greenwood Plaza to its Sydney and North Sydney buying spree, paying $454.4 million for the integrated office and retail development.
The North Sydney purchase from Nuveen Real Estate follows CICT’s purchase of the Sydney CBD’s 66 Goulburn Street and the 100 Arthur Street tower, also in North Sydney. The trio of assets have a combined value of about $1.1 billion, accounting for 5% of its portfolio.
101 Miller Street and Greenwood Plaza were picked up on a yield of 4.9% and have an occupancy of 94.9%, with government, financial services and insurance sector tenants. It is easily linked to the North Sydney train station via Greenwood Plaza.
The 28-storey office component of 101 Miller Street has a 5-Star NABERS Energy, 4.5-Star NABERS Water and 5-Star Green Star rating, and offers large and efficient floor plates of up to 1,500 sqm in size, and panoramic views of the Sydney CBD, Harbour Bridge and Opera House. Total net lettable area is 37,473 sqm.
Greenwood Plaza is home to several specialty retail and service outlets across 8,930 sqm including CottonOn, Din Tai Fung, Seed, L’Occitane, MAC Cosmetics, Romeo’s IGA, Vodafone and Medibank Private. The rooftop is used for seasonal events throughout the year.
“We are pleased to acquire a 50.0% interest in 101 Miller Street and Greenwood Plaza, which is one of the most prominent integrated developments with a premium grade office tower and high-quality retail in North Sydney CBD,” Tony Tan, CEO of CICT Management Limited said.
“The proposed acquisition marks another step forward in CICT’s portfolio reconstitution journey to drive sustainable growth and diversify income sources through accretive acquisitions and recycling capital to higher-yielding assets.”
Last month, Dexus announced it had found a buyer for 201 Miller Street in North Sydney, held within the Dexus Office Partnership, with the sale to realise net proceeds of $152.4 million, while Singapore’s Keppel REIT and Lendlease agreed to buy the Blue & William development for $328 million.
JLL research shows foreign investment levels in Australia’s commercial market remains at elevated levels, accounting for $4.06 billion or 41% of the total $9.94 billion investment volumes into the office sector as of November. South Korean and Singaporean investors continue to be the most active in the office sector, followed by the UK and the US.
Dexus has also just sold a half-stake in 309-321 Kent Street in the CBD to Hong Kong-listed Liu Chong Hing Investment Limited and Ashe Morgan for $401 million.
