Hong Kong’s Link REIT Buys Stake In Multi-billion Office Portfolio In Australia
AUSTRALIA – Hong Kong-listed Link REIT has teamed up with Oxford Properties Group to invest in the Investa Gateway Office (IGO) venture, which consists of Australian office properties collectively valued at more than A$2.3 billion, according to a recent press release published by Oxford Properties.
The IGO venture consists of five premium assets located in Australia’s core markets of Sydney and Melbourne. Link REIT will hold a 49.9 percent interest in the joint venture, while Oxford will own the remaining stake. But the commercial property portfolio will continue to be overseen by Investa.
“IGO is one of the highest quality Australian office real estate portfolios to be offered to the market in recent years. We are delighted to partner with two firms that have deep conviction and connections in the Australian market and further strengthen Link’s presence in the country,” said George Hongchoy, Chief Executive of Link Asset Management Limited, the manager of Link REIT.
“The Australian economy has been highly resilient and the investment in one of its highest quality prime office portfolios provides immediate scale, positions us strongly for the next cycle and aligns with our Vision 2025 growth strategy of diversifying and improving our portfolio mix in the region.”
In particular, the IGO venture comprises five income-producing office developments – 567 Collins Street in Melbourne, while 347 Kent Street, 126 Phillip Street, 388 George Street, and 151 Clarence Street are all situated in Sydney.
Through active asset management, the office portfolio has been successfully de-risked and provides diversified income thanks to its established tenants from diverse sectors, with robust lease covenants and top-notch green credentials.
“Leveraging Investa’s Australian office management expertise, we have created significant value and achieved a high performing de-risked portfolio,” said Alec Harper, Head of Australia at Oxford Properties.
“Following on from the recent investment by Mitsubishi Estate into our Parkline Place project, today’s transaction further demonstrates the continued global institutional demand for prime and highly sustainable office products.”
Completion of the deal is subject to certain conditions precedent and regulatory approvals.
Meanwhile, Oxford Properties plans to redeploy capital from the sale into its prime office develop-to-core pipeline and BTR develop-to-core investment strategy in Australia.