Investa Property Group, on behalf of the Investa Commercial Property Fund (ICPF), has acquired a 75 per cent stake in 420 George Street in the Sydney CBD for $442.5 million.
The A-Grade, 31-level building, with an area of 37,688 square metres was reportedly sold on a yield of 5.3 per cent. The central property is 100 per cent leasedAustralian Prime Property Fund, an associate of Lendlease, will retain its 25 per cent stake in the office tower.
Investa fund manage, Peter Menegazzo told the Sydney Morning Herald the building had attractive fundamentals, including a great location, a limited ability to be built-out, sustainability and a high-quality tenant mix.
"We see this purchase at a time when the Sydney city office market is performing well with vacancies continuing to tighten," Mr Menegazzo said.
"The changes to George Street will also open up the area and create a great space for our tenants.""Its large floor plates can split efficiently, thereby providing flexibility in leasing," he said.
Fortius chief executive Nicholas Sproats said the sale followed the purchase last year of a Brisbane CBD office building at 201 Charlotte Street from a private family.
Mr Sproats said Fortius was considering several other Sydney and Melbourne opportunities.
The sale of the office component was handled by Savills' Ian Hetherington and Ben Azar and JLL's Rob Sewell, Paul Noonan and Simon Storry.
The deal comes as IOF unitholders await the decision this week of the Takeovers Panel on a range of issues raised by DEXUS.