Dexus Wholesale Property Fund, alongside Dexus, will acquire a 50% interest in Sydney’s renowned office and retail complex, the MLC Centre.
JLL negotiated the sale of a 50% stake in the MLC Centre on behalf of QIC, with the JLL team led by Rob Sewell and Simon Rooney, in conjunction with Ian Hetherington from Savills.
The MLC Centre has long been the dominant commercial tower in the Sydney CBD, rising 62 levels above ground.
Holding an unrivalled central CBD location on an 8,367 square metre site in Martin Place, the MLC Centre is bounded by three key Sydney streets – Martin Place, Castlereagh Street and King Street. MLC Centre also has market leading environmental credentials with a NABERS Energy Rating of 4.5 stars.
“Located in the heart of Sydney, the MLC Centre occupies one of the largest freehold sites in the CBD. With over 250 metres of frontage to Martin Place, Castlereagh Street and King Street within Sydney’s exclusive luxury retail precinct, the retail component of MLC provides a highly strategic opportunity for future redevelopment," JLL Head of Retail Investments Simon Rooney said.
After completing an extensive global road show it was evident that global real estate capital remains firmly interested in Australian real estate. Investors were attracted to the significant rental reversion able to be unlocked within the asset over the next few years while the value-add potential provided a unique element for a core asset located in the heart of the Sydney CBD.
JLL Head of Office Investments Rob Sewell said Sydney was ranked as the best performing office market in the world when it comes to forecast rental growth.
"This growth has captured the interest of both domestic and offshore capital who are looking to position themselves to benefit from the cyclical upswing. The MLC Centre is perfectly positioned to capture this growth going forward," he said.
“Office assets of this calibre and profile are rarely offered to the market. Over the past 10 years only four assets over $500 million have sold in the Sydney CBD.
"The unique nature of the offering resulted in significant domestic and offshore investor interest to take a stake in a prime Sydney CBD office asset that is recognised internationally as one of the landmark office buildings in Australia.”