ESR Australia has bought a business park in Sydney鈥檚 north from AMP Capital for A$71m (鈧�46m).
The asset, at 44-50 Waterloo Road in Macquarie Park, had been held in the AMP Diversified Property Fund since its inception in 2014, delivering a 30% annualised return for the fund.
Proceeds from the sale will go towards meeting redemption requests totalling more than A$2bn and to the development of Quay Quarter Tower on Sydney鈥檚 harbourfront.
A source said the asset was sold at a 鈥渟ignificant premium to book value鈥� as a result of strong competition.
The disposal was consistent with the fund鈥檚 capital management strategy, the source said, adding that the fund was getting 鈥渟ome excellent sales results at the moment鈥�.
Phil Pearce, CEO of ESR Australia, said: 鈥淭his landbank investment offers exponential opportunity, providing holding income to allow a staged redevelopment.鈥�
The location was well-placed to capitalise on the changing office landscape, he said, with an increase in demand for decentralised office space since the COVID-19 pandemic.
鈥淲e see business park assets as complementary to our core strategy of logistics and industrial property. We鈥檝e strong capability in the development and management of business park space, and are pleased to add this strategic asset to our portfolio,鈥� he said.
To read the digital edition of the latest 91传媒在线 magazine click here.
