Chinese-backed developer Poly has further expanded its Australian footprint with the purchase of a 26-storey office building in the southern end of Sydney CBD for $270 million.
Adding to the company’s growing pool of high-quality residential, mixed use and commercial east-coast assets, the 59 Goulburn Street asset is located near Central Station and offers 19,721sq m of lettable space.
Poly Australia’s senior analyst Ashwin Arumugam said the Goulburn Street asset was “a golden example” of the types of property Poly was looking to acquire as it expands its asset management operations in Australia.
“It’s in a premium location, easily accessible to tenants and allows us some scope to reposition its offerings,” Arumugam said.
“On top of that it's in an area with significant reactivation plans with the nearby light rail and tech hub, we see the acquisition delivering well into the long term.”
While the building also comes with approval for redevelopment into a 38-story tower, comprising 407 hotel suites and 90 residential units, retail and office spaces, Poly Australia says it has no plans to pursue redevelopment at this time.
Since launching in Australia in 2014, the Shanghai-listed subsidiary of Poly Global has built up a pipeline of more than $2 billion, including a 6.2-hectare site in Brisbane and more than $260 million in Sydney residential projects.
“We are proactively looking for the next opportunity as part of our accelerated growth plans across Australia,” Arumugam said.
The refurbished commercial tower was purchased from SC Capital Partners on behalf of its RECAP Fund, with SC Capital Partners retaining Fortius Funds Management as its local operating partner from acquisition through divestment.
The transaction was negotiated by Colliers International co-agents James Barber, Adam Woodward and James Mitchell along with JLL's Simon Storry, Rob Sewell and James Aroney.