Allianz, NPS acquire 50% stake in Sydney’s Commonwealth Bank Place

Strategically located on Harbour Street in Sydney, Commonwealth Bank Place has a gross valuation of US$445 million ($600 million) [Credit: Allianz Real Estate]

SINGAPORE (EDGEPROP) - Allianz Real Estate has agreed to purchase a 50% stake in Sydney’s Commonwealth Bank Place at Darling Quarter in Sydney, Australia. The acquisition is made via AREAP Core I fund, on behalf of National Pension Service (NPS) of Korea and Allianz group of companies.

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Strategically located on Harbour Street in Sydney, Commonwealth Bank Place has a gross valuation of US$445 million ($600 million). The transaction, subject to regulatory approvals, is expected to be completed in 1Q2022.

The seller of the 50% stake in Commonwealth Bank Place is said to be Abu Dhabi Investment Authority, with the remaining 50% stake held by Lendlease-managed Australian Prime Property Fund. Commonwealth Bank Place was developed by Lendlease and completed in 2012. The 61,000 sqm (656,604 sq ft) commercial complex has retail shops on the ground floor and two campus-style, premium-grade office towers.

The entire asset has been leased to Commonwealth Bank of Australia with occupancy rate at 99.7% and weighted average lease expiry (WALE) of more than 12 years. The property has achieved the highest rating in terms of sustainability anIt was awarded 6-Star Green Star Design and As-Built certification and is currently operating with 6-Star NABERS Energy and 6-Star Water ratings, which is the highest rating in terms of sustainability, and efficiency in terms of energy and water consumption.

This latest transaction is in line with AREAP Core I fund’s strategy to build a diversified portfolio of high-quality assets across Asia-Pacific and comes on the back of the acquisition of a 50% stake in OUE Bayfront, Singapore last year. The US$2.3 billion ($3.1 billion) investment vehicle managed by Allianz Real Estate, is owned by NPS and Allianz, with each holding equal stakes.

AREAP Core I is now 82% committed and this asset provides attractive diversification to the portfolio, according to Rushabh Desai, Allianz Real Estate Asia Pacific CEO.

Allianz Real Estate’s exposure in Asia Pacific amounted to US$8.8 billion ($11.88 billion) as at the end of September 2021, of which Australia accounts for 20%.“Sydney is one of the most liveable cities in the world and the long-term outlook for the Sydney office market remains favourable, supported by robust economic fundamentals, an attractive labour market and strong infrastructure investments,” commented Danny Phuan, Asia-Pacific Head of Acquisitions for Allianz Real Estate.

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