Joint developers Frasers Property Industrial and Winten Property Group have sold a $167.2 million building within the Macquarie Exchange precinct to Singapore-based Ascendas Reit.
The Singapore and Australian-based developers will continue to build the MQX4 building as part of their $750 million precinct in northern Sydney, approved earlier this year.
The nine-storey building will be constructed on a 3,308sq m freehold site within the precinct and includes 17,753sq m of office space, 1,631sq m of ground floor retail and 204 car spaces.
The property at 1 Giffnock Avenue, Macquarie Park will also include rooftop office and terrace spaces, outdoor terraces fronting the streets and interconnecting floors via winter gardens overlooking the precinct’s central park.
Completion of the land sale is expected later this year and the MQX4 building will be completed in mid-2022.
The developers have agreed to provide a three-year rental guarantee from completion of the property for any vacant spaces.
Ascendas Funds Management executive director, chief executive William Tay said the proposed acquisition will be funded by internal resources and existing debt facilities.
“We are delighted to secure our first suburban office property in Macquarie Park, Sydney’s premier innovation location, and Ascendas Reit’s fifth suburban office asset in Australia,” Tay said.
“We believe that decentralisation trends will continue to benefit Macquarie Park which has already attracted many leading companies who have set up their headquarters in the precinct.”
Macquarie Exchange will be built across a 15,620sq m site, consisting of four buildings, connected by laneways and collaboration spaces around a central 2,200sq m community park.
Frasers Property Industrial chief executive Reini Otter said this development has high-quality design and sustainability features.
“The sale of MQX4 to Ascendas Reit is in line with our capital management programme and shows the strength of market demand for what’s being created,” Otter said.
“More innovation jobs are coming to Macquarie Park, major employers like the pharmaceuticals industry have growth plans in the area.”
This is the second Singaporean transaction in the Sydney suburb in recent weeks, with asset management company Keppel Capital purchasing Pinnacle Office Park for $306 million.