This article is from the Australian Property Journal archive
PROPERTY giant Lendlease has bought a La Trobe Street office tower for $203 million, giving it control of adjoining commercial blocks in Melbourne’s CBD, as AMP Capital winds up a $750 million real estate mandate managed for reinsurance group Swiss Re.
Lendlease adds the recently upgraded 469 La Trobe Street tower to its 485 La Trobe Street building, opposite Flagstaff Gardens in the city’s legal precinct.
Swiss Re bought the property in 2017, earlier in the office market cycle, for $160.5 million.
The 19,864 sqm tower comprises 17 levels of offices and two levels of parking. It is one of several office towers and a warehouse that were being offloaded to wind up the mandate.
Lendlease will have an eye to the development potential of the site, and has been looking to boost its development pipeline. It is currently putting together its $2.9 billion Melbourne Quarter commercial and residential precinct on the western edge of the CBD.
Its investment platform has just picked up a western Sydney logistics facility within the portfolio, leased to retailer Best & Less, for $130.1 million on a very sharp yield of 3.62%.
The Eastern Creek facility was picked up two years ago for $99.6 million from troubled retailer Steinhoff Asia Pacific.
The Swiss Re portfolio also includes 32 Walker Street in North Sydney, and half shares in 50 and 60 Carrington Street, in Sydney’s Wynyard precinct.
