Aware Real Estate has expanded its Australian office portfolio after acquiring a 50 per cent interest in Sydney’s 100 Market Street for around $226 million, adding another prime CBD asset to Aware Super’s direct property holdings.
The acquisition establishes a new partnership with Link Asset Management and strengthens Aware Real Estate’s strategy of investing in high-quality institutional office assets capable of delivering long-term returns.
Located in the centre of Sydney’s CBD, the A-Grade office building comprises 28,339 square metres of premium office space across 10 levels and is fully leased to a tenant base that includes an S&P/ASX 100-listed property investor, a Commonwealth government body and a sovereign wealth fund.
The building is directly connected to Westfield Sydney, has strong transport links and has consistently achieved a 5.5 Star NABERS Energy rating.
Head of investments and capital transactions at Aware Real Estate, Pete Carstairs, said the acquisition was closely aligned with the platform’s long-term investment strategy.
“100 Market Street is a high-quality CBD office asset that aligns strongly with our long-term investment strategy and commitment to delivering sustainable value for our investor, Aware Super, and its members.
“We are pleased to partner with Link, whose experience with the asset complements our own investment and asset management expertise. Together, we look forward to stewarding the future of this asset through a collaborative partnership focused on long-term performance, tenant outcomes and value creation.”
Head of property at Aware Super, Alek Misev, said the purchase reflected the fund’s conviction in the long-term outlook for Sydney’s office market.
“This was a rare opportunity for the Aware Real Estate platform to acquire a high-quality Sydney CBD office asset with cornerstone government and corporate tenants. Ideally located near transport and retail amenities, the building is well positioned to remain in demand through market cycles while appealing to a diverse range of businesses.
“The 100 Market Street investment also reflects our continued confidence in the long-term strength of the Sydney CBD office market, where we continue to see opportunities to invest in high-quality institutional assets with strong tenant demand and enduring fundamentals.
“Commercial real estate remains an important part of our portfolio, and this acquisition aligns with our strategy of delivering resilient, sustainable returns for our members over the long term.”
Link executive director and chief investment officer, John Saunders, said the partnership combined complementary expertise with long-term capital.
“We are pleased to work alongside Aware Real Estate as an aligned partner, jointly overseeing the continued success of 100 Market Street. This transaction brings together complementary strengths and long-term capital, positioning the asset to deliver enhanced performance on behalf of our investors.
“Link looks forward to working collaboratively with Aware Real Estate, together we are committed to delivering outstanding outcomes for our tenants while Link continues to provide agreed management services in support of the partnership.”
The purchase further expands Aware Super’s property portfolio, which manages more than $16 billion in assets on behalf of the fund’s 1.3 million members. It also adds to Aware Real Estate’s directly owned office portfolio, which includes 145 Ann Street in Brisbane’s CBD and 207 Pacific Highway in St Leonards.