New Office Investment Hotspots

New Office Investment Hotspots Emerging In Asia Pacific

ASIA PACIFIC – A report from Deutsche Bank’s affiliate DWS states that new office investment hotspots are appearing across the Asia Pacific (APAC) region, as the flourishing tech and life sciences sectors drive demand for affordable and accessible workspaces outside of traditional business districts, reported Mingtiandi on Tuesday evening (14 December, SGT).

In particular, the Frankfurt-based asset manager said the office markets of Sydney, Melbourne, Brisbane, Seoul, and Japan’s Fukuoka offer excellent investment returns, as new economy companies seek quality and budget-friendly office space with lifestyle components and good transport connectivity.

“We see these locations offering attractive office investment opportunities with the potential for returns well in excess of the traditional city core,” wrote DWS in its report.

“These locations are often the home of rapidly expanding business clusters – centred around growth sectors such as technology, gaming or life sciences – and supported by improving infrastructure.”

In Australia, DWS underscored the success of Macquarie Park and North Sydney in attracting bluechip tech and media companies such as Microsoft, through a blend of quality office supply, more affordable office rents and good connectivity options, which places the properties within 20 minutes of the traditional central business district (CBD) of Sydney.

Interestingly Keppel REIT seems to have a similar outlook as DWS when the Singapore-based trust struck a deal earlier this month to acquire the Blue & William office development in North Sydney for A$327.7 million ($234.1 million).

“North Sydney is New South Wales’ second largest office market after the Sydney CBD, and is a location of choice for diverse industry sectors including technology, media and telecommunication, as well as the professional services and insurance sectors,” said Keppel REIT’s manager.

The Singapore-listed trust bought the Grade A office project from a joint venture between Australian developer Thirdi and Hong Kong’s Phoenix Property Investors for A$2,174 psf, based on the commercial property’s net lettable area (NLA) of 150,694.7 sq ft

Furthermore, Sydney-based developer Lendlease has agreed to take over as Blue & William’s builder and property manager.

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