Sydney’s MidCity Centre has had its majority stake sold to Hong Kong’s Cheng family by Fortius Active Property Trust No. 1 for over $310 million.
The Australian Financial Review reported the 75 per cent sale of the premium Pitt Street retail centre to the Cheng family with the price reflecting over $45,000 per square metre at a yield expected to be below 5 per cent.
Tony Cheng, who runs the family’s privately owned NGI Investments, told the AFR he was very pleased to acquire the asset.
"We see this as an opportune time to invest in Australia and we are excited to acquire this prime retail asset,” he said.
"This purchase strengthens our property portfolio in Sydney."MidCity Centre is strategically located between George Street and Pitt Street Mall facing the Westfield Centre and with internal access to Myer.
The centre was redeveloped in 2010 by Lendlease and houses retailers such as Kathmandu, Jurlique, Peter Alexander, Uniqlo, Trenery and Portmans.
Lendlease has held on to a 25 percent interest through one of its property funds.
The Cheng family also owns other commercial buildings in Sydney.