Listed Australian property group Stockland has acquired the remaining 50% of Piccadilly Centre office complex in Sydney that it does not already own from Oxford Properties for A$347m (鈧�212m).
In a double transaction, Stockland sold its half stake in another building and retail centre, 135 King Street and the Glasshouse shopping centre, for A340m to Investa Commercial Prime Office Fund (ICPF).
ICPF fund manager, Jason Leong told 91传媒在线 the 100% ownership delivered greater control, allowing the fund to leverage Investa鈥檚 property and asset management platform to enhance returns.
鈥淲e are very pleased to have secured a further interest in this asset which delivers on ICPF鈥檚 strategy of owning the highest quality, prime office buildings within Australia鈥檚 major CBD office markets.鈥�
He added that its expiry profile would allow ICPF to leverage the continuing strong leasing conditions in Sydney, with tight vacancy and low levels of supply.
Stockland鈥檚 acquisition of Piccadilly Centre reversed the group鈥檚 decision in 2014 to sell half of the centre to Investa Office Fund, now controlled by Oxford Properties.
Stockland鈥檚 CEO of commercial property, Louise Mason, said: 鈥淭he midtown precinct is undergoing significant renewal. Combined with our development plans, this will help further drive tenant demand and rental strength at Piccadilly.鈥�
She added: 鈥淥btaining 100% control of the asset simplifies the stakeholder engagement process for these plans.鈥�
Mason said Stockland plans to introduce third-party capital to the redevelopment project when it has obtained necessary planning approvals.
She said that when Stockland sold a half-share of Piccadilly in 2014, the proceeds were used to grow its logistics portfolio, which had delivered 鈥渁bove-hurdle鈥� rates of return.
鈥淣ow, with the broader precinct renewal and surrounding infrastructure delivery, the time is right to progress our development plans at Piccadilly by moving to 100% ownership.鈥�
