Singapore’s Sun Venture Acquires Sydney Office Tower For A$148mil
AUSTRALIA – Sun Venture, an investment company based in Singapore, has entered into a deal to purchase a Grade A building in North Sydney for A$148 million, reported Mingtiandi on Wednesday evening (9 November, SGT).
Known as 50 Miller Street, the 112,386 sq ft commercial property’s selling price translates to a yield of 5.5 percent. The asset consists mainly of office space and retail premises on the ground level.
The vendor is Sumner Capital, a Sydney-based investment manager that upgraded the former Grade B office property and clinched long-term leases from coworking space operator WeWork and a US government agency.
“50 Miller Street is a high-quality, well-tenanted building strategically positioned to benefit from enhanced transport connectivity and urban transformation plans in the area,” said Ong Jeun Jye, head of real estate for Sun Venture.
“We are delighted with our first acquisition in Australia. We have confidence in the market and look forward to building our presence and portfolio here.”
Previously, Sumner Capital acquired the office building for A$60 million. At present, the fully occupied commercial property is valued at over A$160 million and has a weighted average lease expiry (WALE) of 10 years.
The NABERS five-star building is just a stroll from the North Sydney railway station and the upcoming Victoria Cross rapid transit station.
Sun Venture’s maiden investment in Australia follows several real estate transactions undertaken by the Singaporean company over the past few months.
In June, Sun Venture divested the Westgate Tower in Singapore’s Jurong East for S$680 million to American fund manager AEW. The company is also undertaking exclusive due diligence to acquire the 15-storey Bugis Junction Towers for nearly S$680 million.
In February, the company completed the purchase of a central London office building from a WeWork fund for £148 million.