Asian and Canadian Institutional Capital Flows to Australian Offices

According to on-the-ground Sydney real estate experts, offshore investors and local wholesale funds are driving demand for prime grade assets. These institutional and corporate buyers are betting immensely on Australian core real estate. Suntec Real Estate Investment Trust (Suntec REIT), a Singaporean property investor, purchased a proposed 31-story office tower to be developed by Leighton Holdings in North Sydney for A$ 413.19 million. Leighton Holdings plans on completing the building by the first half of 2016; the tower will be located at 177-199 Pacific Highway. Suntec REIT is managed by ARA Asset Management – an affiliate of Hong Kong billionaire Li Ka-Shing’s Cheung Kong Group.

At the end of 2012, the CIC sold their 6.9% stake in Goodman Group, raising A$ 519 million.

In a separate move, AIMS AMP Capital Industrial REIT, another Singaporean REIT, bought half a stake in the A$ 375 million Optus Centre in Macquarie Park. Macquarie Park is a suburb in Sydney located in the northwest end.

Being advised by Invesco, the China Investment Corporation (CIC) is keen on acquiring the Centennial Plaza complex on 231 Elizabeth Street, a three-tower property in Sydney for nearly A$ 300 million.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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