Billionaire Paul Lederer Buys Share in Sydney Tower

Billionaire and co-owner of A-League club Western Sydney Wanderers, Paul Lederer, has acquired a 50 per cent stake in a St Leonards office tower in Sydney.

The Lederer Group partnered with Centuria Metropolitan REIT to acquire the remaining half share of the A-Grade building for $172 million from Abacus and a co-investment partner.

Lederer said the group was “pleased to expand” on the strong relationship with Centuria on the high-quality metropolitan office asset. Lederer’s investments in various Centuria funds exceed $195 million.

“The Lederer Group has investments in excess of $195m across CMA, Centuria Industrial REIT, Centuria Capital Group and now our wholesale funds business,” Centuria head of real estate and funds management Jason Huljich said.

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Centuria originally purchased a 50 per cent stake in the building, owned by Abacus and its equal co-investment partner, last December for $85.8 million on a 6.5 per cent yield. Centuria had an option deal in place to buy out the remaining 50 per cent.

The 201 Pacific Highway acquisition, featuring 16,488sq m of net lettable area, helps Centuria consolidate its St Leonards presence after its $43 million acquisition of neighbouring 203 Pacific Highway in 2015.

Both buildings are A-Grade quality assets with proximity to St Leonards rail station.

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Centuria Group chief executive John McBain said the group anticipates entering into more transactions with wholesale capital partners “to partner both our listed and unlisted property fund management vehicles.”

“This is on-strategy and designed to encourage strong assets under management (AUM) growth throughout the group,” McBain said.

The deal brings Centuria’s unlisted wholesale AUM to $407 million with the group’s total AUM at $4.6 billion.