Pramerica Real Estate Investors (Asia) Pte Ltd (“Pramerica”) has agreed to acquire a 50 percent interest in 40 Mount Street, North Sydney, an A-Grade office building known as “Coca Cola Place” from Investa Property Group (“Investa”), the companies announced today. Pramerica is the Asian arm of the real estate investment and advisory business of Prudential Financial, Inc., (NYSE: PRU).
Pramerica, which is acquiring the ownership stake from Investa, is acting on behalf of institutional investors in its Asia Real Estate Fund. Investa, which sold its other half interest in the building to Investa Commercial Property Fund (“ICPF”) in October 2010, will be retained as property manager.
Commenting on the transaction Steve Bulloch, Managing Director in Australia for Pramerica said: “The asset ticked a number of boxes for us in terms of physical attributes, tenant profile and quality of cashflow, and offered a good fit within the broader portfolio. We also see A Grade vacancies remaining low in this market, which should drive rental growth.
“We are also pleased to partner again with Investa, demonstrating our preference to leverage strategic relationships through multiple transactions,” added Mr Bulloch.
Michael Cook, Group Executive and Head of Capital Transactions and Commercial Developments at Investa added: “40 Mount Street is one of only a few iconic, investment-grade office assets in North Sydney, and represents a prime opportunity for those seeking exposure to the strengthening Sydney office market.”
At the same time the sale was finalised between Investa and Pramerica a large portion of the remaining space was leased to Tenix, a major infrastructure maintenance and engineering services company, taking occupancy of the office space in the building to 100 percent.
Commenting on the sale to Pramerica and the recent lease to Tenix Peter Menegazzo, Fund Manager of ICPF commented: “Clearly high quality, next generation office buildings like 40 Mount Street are highly sought after. The building's features and strong tenancy profile has attracted a high quality investment partner in Pramerica, and we look forward to a strong, long term investment partnership.”
"We are also thrilled to welcome a tenant of the calibre of Tenix to the building who will join other blue chip tenants that include Coca Cola and Vodafone," said Mr Menegazzo.
Investa completed 40 Mount Street in 2010. The property offers panoramic harbour and city views and was the first completed high-rise building in New South Wales to achieve the 6 Star Green Star Office Design and As Build Rating. In 2010 the building won the Urban Taskforce award for 'Development of the Year,' and in May this year was awarded 'NSW Development of the Year,' and Australia‟s 'Best New Sustainable Development of the Year' by the Property Council of Australia at the Rider Levett Bucknall Innovation and Excellence awards.