BGO and Investa have entered into an agreement to acquire a portfolio of assets, comprising 123 Albert Street, Brisbane, 30 Hickson Road, Sydney (“30 The Bond”) and 36 Hickson Road, Sydney from Dexus. The acquisitions further strengthen the partnership between Investa, Cliffbrook and BGO, following two recent investments, with the partnership now representing a total value of approximately A$1.8 billion, including 10-20 Bond Street, Sydney, and 100 Mount Street, North Sydney.
BGO and Investa’s flagship office fund, the Investa Commercial Office Fund (“ICPF”), will each hold a 50 per cent interest in 123 Albert Street, Brisbane. The Premium-grade office tower, completed in 2011, comprises approximately 40,000 sqm of NLA and is in Brisbane's premier financial precinct, close to major government, legal and retail amenity and public transport infrastructure.
The balance of the transaction will see BGO acquire 30 The Bond, a high-quality A-grade office asset comprising circa 19,000 sqm of NLA and 36 Hickson Road, a boutique heritage office building. Both Sydney assets will undergo a significant capital investment and repositioning program, alongside a targeted leasing strategy, to capitalise on strengthened market conditions, ongoing precinct investment and enhanced connectivity provided by the Barangaroo Metro Station.
Marcus Merner, Managing Partner and Head of Asia at BGO, said: “We believe this is an attractive point in the cycle to invest in high-quality office assets in Australia’s leading CBD markets. Sydney and Brisbane continue to benefit from constrained new supply and strengthening demand for well-located, highly amenitised workplaces, creating opportunities for disciplined capital investment and active asset management. We are pleased to expand our partnership with Investa, whose local operating acumen will be central to executing the business plans for these assets.”
Peter Menegazzo, Chief Executive Officer at Investa said: "We are delighted to deepen our partnership with BGO through this transaction. We share a high conviction in the Sydney and Brisbane office markets and see a compelling opportunity to create long-term value by investing in high-quality assets at this point in the cycle."
Cliffbrook is working alongside BGO as its local Australian partner on the transaction. Investa will provide investment, asset and property management services across the portfolio, leveraging its market-leading workplace expertise to drive long-term performance and customer outcomes.