US and Canada pair sell stake in Sydney’s ANZ HQ
US private equity group Blackstone and Canada’s Ivanhoe Cambridge have become the latest players to cash in on Sydney’s office tower boom, offloading a stake in the $1.6 billion-plus ANZ headquarters tower in a deal showing record pricing.
They are selling a one-quarter stake in the Liberty Place precinct to powerful industry superannuation-funds backed group ISPT, which is increasing its stake in the building from one-quarter to a half share, alongside the GPT Wholesale Office Fund.
While the $400 million deal is being finalised, it shows the continued rise in the price of office towers, while shopping centres are in the doldrums with few buyers chasing the biggest retail complexes — more than $10bn worth languishing on the market. But office towers have never been more sought-after and the imminent deal on the landmark tower will show a yield in the low-4% range, a record for Sydney.
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It also comes amid an unprecedented surge in behind-the-scenes trades of stakes in office towers, with groups ranging from Singapore’s GIC Real Estate, the Hong Kong Monetary Authority and listed groups GPT, Dexus and Charter Hall all buying.
Blackstone and Ivanhoe Cambridge, the real estate arm of one of Canada’s largest pension funds, partnered to buy the quarter stake in the then $1bn tower from LaSalle Investment Management in 2015. That marked Ivanhoe Cambridge’s entry into the local market and was billed as Blackstone’s first core-plus investment in Asia.
Blackstone has since built up a substantial local empire and this year it swooped on the office towers above Westfield Sydney for $1.52 billion. The trading shows Blackstone is backing a new generation of office towers while also exiting some maturing investments.
The sale had pitted the tower’s co-owners, the GPT-run fund, which held a 50 per cent interest, and ISPT, with 25%, against each other. GWOF held its stake in Liberty Place at a fair value of $725 million at the end of December last year.
ISPT and Blackstone declined to comment. Agents JLL and CBRE are advising, but they did not return calls.
ISPT also has been on the hunt for a premium long-leased office asset leased to top tenants and last bought a half interest in Westpac’s Kent Street headquarters. The whole precinct has leapt in value as the light rail and planned metro change the area. Stockland and Oxford are also investing.
Liberty Place is a premium-grade office complex and comprises ANZ Tower, Legion House, 167 Castlereagh St, a retail plaza and a car park.
The 42-level bank tower offers harbour and city views and incorporates a dual-street frontage, connecting Castlereagh and Pitt streets. Grocon won plaudits for the development, completed in 2013, but it later sold out.
This article originally appeared on www.theaustralian.com.au/property.
