Chinese investment on the rebound in Sydney
Cashed-up Chinese groups are pushing deeper into Sydney’s suburban offices and apartments with sites worth about $200 million changing hands, defying concerns about a year-on-year slump in Chinese outbound property investment in the third quarter.
In the latest move, a private Asian group has swooped on an office tower in North Sydney for close to $52 million. The first-time buyer in Australia will keep the building as it is rather than develop, as it generates a steady income and rents are rising.
The tower at 75 Miller St was sold by Property Bank Australia and Security Capital Corporation, with the sale of the multi-tenanted building showing a 5.6% yield.
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The purchase shows that Chinese buyers are willing to fork out a premium for assets. The vendors picked it up for $22.25 million in 2011.
The 4930sqm building was sold by Knight Frank’s Tyler Talbot and Dominic Ong and CI Australia’s Bevan Kenny and Chris Veitch, but they did not comment.
Chinese outbound investment in Australia was $US738 million in the third quarter, a jump from the $US496 million of investment reported in the entire first half
Separately, a private Chinese investor hailing from Fuqing, Xue Shuihe, has been linked to another major tower in North Sydney that is selling.
Fund manager AMP Capital is finalising a deal to sell the landmark complex at 1 Pacific Highway for about $114.5 million to the Chinese investor.
The complex, marketed by CBRE and Savills, was billed as one of the largest sites in North Sydney and sports stunning Sydney Harbour views, making it suitable for a longer-term conversion to apartments.
Elsewhere in the city, Chinese group SJD Property Group, which is developing the 1788 Residences in Double Bay, is planning its next ultra-luxury offering.
It has quietly bought the site next to its Cross St project from the Eisman family for about $45 million and is planning the project’s next stage.
The moves as well as about $70 million worth of land purchases in Melbourne confirm that Chinese investment into Australia has been rebounding.
Mainland groups are turning over their capital in offshore markets rather than repatriating funds from asset sales, real estate agency Cushman & Wakefield says.
Chinese outbound investment in Australia was $US738 million in the third quarter, a jump from the $US496 million of investment reported in the entire first half.
– with Elizabeth Redman
This article originally appeared on www.theaustralian.com.au/property.
