Two US-headquartered firms have swooped on the former home of Sydney’s ASX, picking up the 13-storey property at a heavily discounted price.
Joint-venture partners PGIM Real Estate and Anton Real Estate Partners reportedly paid $250 million for the Exchange Centre at 20 Bridge Street.
It was listed by Hong Kong-based Early Light International last year with price expectations of around $300 million.
Billionaire Francis Choi bought the asset in 2017 for $335 million. The block has 20,150sq m of net lettable area across floor plates of 1500sq m around a central core design.
The deal marks the return of both firms to the office sector after several years on the sidelines.
PGIM Real Estate is the $335-billion real estate investment and financing business of PGIM, itself the $2.18-trillion global investment management business of Prudential Financial.
Anton is a subsidiary of Proprium Capital Partners, a spin-out of Morgan Stanley Real Estate Special Situations.
The firms said they intended to upgrade the property when its anchor tenant, the ASX, takes up new offices at Investa and Manulife Investment Management’s 39 Martin Place in October of this year.
The plans would focus on enhancing the plaza arrival experience with customer service and hospitality offerings, consistent with the momentum of the transforming precinct, they said.
Anton Real Estate Partners partner Tony Martin said there was limited supply in Sydney’s core office market and that the asset had potential.
“It was a hugely compelling proposition,” Martin said.
“Delivering significant enhanced value to 20 Bridge Street through our comprehensive repositioning and upgrade program is only part of the story.Â
“With this prime office building, we have a unique ability to meet the requirements and demands of corporate tenants in Australia, which are really focused on a flight-to-quality strategy.”
PGIM Real Estate head of Australia Steve Bulloch said that after acquiring residential and industrial properties in Australia last year, office was the next step.
“The office sector in Australia has been more resilient than most global office markets,” Bulloch said.
“We have been very thoughtful about choosing the right re-entry point to the office sector and believe the current timing is right.”
