Link Real Estate Investment Trust (0883) said on Wednesday that it has agreed to sell a 50 percent stake in 100 Market Street, a Grade-A office tower in Sydney’s central business district, to Aware Real Estate for A$225.88 million (HK$1.24 billion).
The deal is expected to complete within the third quarter, the company said.
Net proceeds from the sale are estimated to be about A$222.7 million, which will be used for a combination of unit buy-backs and to reinvest in Link REIT’s core retail portfolio in the Asia Pacific region.
The 10-storey 100 Market Street has a total net lettable area of approximately 28,339 square metres, with full occupancy. Its high-quality tenants include an S&P/ASX 100 listed property investor, a Commonwealth government body, and a sovereign wealth fund.
Upon completion, Link REIT and Aware Real Estate each will hold a 50 percent stake in the property.
Link’s executive director and chief investment officer John Saunders said the transaction demonstrates its active portfolio optimisation and disciplined capital recycling approach, where Link is going back-to-basics to focus on its strength in owning and managing retail assets in Asia Pacific.
“The transaction allows us to reduce our exposure while establishing a new capital partnership and continuing to provide agreed management services that support the operation of the investment,” he added.
The deal brings together complementary strengths and long-term capital, positioning the asset to deliver enhanced performance on behalf of investors, said Julian Menegazzo, Link’s head of Australian Investments, adding that Link looks forward to working collaboratively with Aware Real Estate and together are committed to delivering outstanding outcomes for tenants.