This article is from the Australian Property Journal archive
M&G Real Estate has snapped up a 25% stake in Coca Cola Place in North Sydney for $109.5 million as part of its core Asia property strategy.
The transaction is also the second joint venture with Investa Commercial Property Fund following the 400 George St acquisition with ICPF in 2006.
M&G Real Estate is part of M&G Investments, which is the real estate investment arm of Prudential plc.
M&G Real Estate’s core Asia property strategy manager Richard van den Berg said demand for office space particularly in North Sydney remains strong due to continued infrastructure and residential development, growth of the finance, business services and technology sectors, and supply constraints up to 2020.
“We are delighted to further expand our real estate portfolio in Australia and to work with Investa again on our second office building acquisition in Sydney. We look forward to continuing to work with them and increasing our exposure in Australia.
“Australia’s economy continues on a positive trajectory and demand for modern office assets continues to increase as vacancy rates in North Sydney are expected to tighten from 6.1% in mid-2018 to 5.7% by the end of 2018 due to positive leasing activity. Coca Cola Place is well positioned to benefit from this trend and will contribute significant value to our property strategies,” he added.
Located at 40 Mount St, Coca Cola Place was built in 2010 as a modern office and retail building comprising 25 storeys and a combined 28,552 sqm of retail and office space.
It has been awarded a 6-star Green Star Office Design and “As Built” rating, 5.5-star NABERS Energy rating, and a 4-star NABERS water rating. The building is fully occupied with long-term anchor tenants, including Coca Cola and Vodafone.
Australian Property Journal
