Herbert Smith Freehills has advised the Private Property Syndicate, managed by Colonial First State Global Asset Management, on the sale of B-grade office building at 6-10 O’Connell Street in Sydney’s CBD, in one of the largest direct property sales during the third quarter of 2012.
The 29-storey office complex was bought by MGPA, a Singapore-based private equity real estate advisory company, for A$105.1 million, marking the company’s first acquisition in the Australian market.
The sale will see MGPA own a combined total of 14,601 sq m of office space, which at the moment is 92% occupied by 38 office tenants, as well as retail space on the ground floor. The building is located in one of Sydney’s most sought after business districts, the Golden Triangle, providing ample opportunity for MGPA to reposition the asset.
Herbert Smith Freehills’ team was lead by Australian partner Greg Hing, with support from lawyers including senior associate Barry Walker and solicitor Japonica Sheridan.
‘We have seen a significant surge in foreign investment into the Australian property market during the third quarter of this year, particularly from Asian real estate investment trusts seeking opportunities in the local market,‘ said Mr. Hing. ‘This rise in activity shows that Australia is still one of the more attractive investment destinations for global property funds.’
Clifford Chance advised MGPA on this transaction.
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