GPT sells 25 percent share in Sydney office building for A$584.6m

GPT sells 25 percent share in Sydney office building for A$584.6m
1 Farrer Place,Sydney Image: Courtesy of GPT

Australian property group GPT Group (GPT) has agreed to sell its 25 percent share in 1 Farrer Place, Sydney to the Lendlease managed Australian Prime Property Fund Commercial for A$584.6 million.

GPT’s Chief Executive Officer Bob Johnston said: “The sale of Farrer Place capitalises on the strong demand and rare opportunity to purchase landmark office assets. The proceeds from the sale will be reinvested into new opportunities including logistics acquisitions and the Group’s development pipeline, which we believe will generate superior long term returns for investors.”

1 Farrer Place is regarded as Sydney’s preeminent office building with expansive harbour views. The complex consists of 84,900 sqm of Premium Grade accommodation comprising Governor Phillip tower, a 64 level office building Governor Macquarie Tower, a 41 level office building Phillip Street Terraces, being five restored historic terraces and nine levels of basement car parking for over 654 cars.

The transaction is expected to settle by mid-December.

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Last week, the Group exchanged contracts for the purchase of three prime logistics properties and 2.35 hectares of adjoining development land at Drystone Industrial Estate, Truganina for a total price of $127.6 million. Settlement is expected to be completed by mid-December.

The properties, originally developed between 2015 and 2019, provide a combined 44,137 square metres of high quality warehouse and cold storage space fully leased to five tenants with a WALE of 8.2 years.

The Group has also recently commenced the speculative development of a 16,270 square metre warehouse at Berrinba in Brisbane, with completion scheduled for the second half of 2021 and an expected end value of $33 million.

GPT’s Chief Executive Officer Bob Johnston said: “These investments are consistent with GPT’s strategy to grow our exposure to the logistics sector, and complement our significant logistics development pipeline which has an expected end value of approximately $1 billion. The properties are well located, with long leases and good access to transport links, and we expect these assets will
benefit from sustained demand from occupiers.”