Chinese developer snaps up Tabcorp building in latest Sydney asset sale

A new round of assets sales is set to hit the Sydney market worth well over $200 million in coming months.

It is expected the main buyers will continue to be overseas-based investors, some of whom are keen to get a foot hold into the market and convert the offices into residential.

The Ausgrid Tower at 570 George Street, opposite Sydney Town Hall and St Andrew’s Cathedral, is said to be close to being sold.

It is is being divested by the NSW Government with a mooted price tag of about $200 million.

Real estate agents speculated that chinese investors, Greenland, was an interested party.

Stockland has also confirmed it has non-core assets on the market including its share of the Piccadilly Centre in Pitt Street and has done a deal with Investa Commercial Property Fund to sell the office component of 135 King Street. Stockland will retain the retail component.

The latest sale was by AMP Capital, which has exchanged contracts on the Tabcorp headquarters at 495 Harris Street Ultimo with a Chinese developer for $63 million.

The office property has 10,000 square metres of net lettable area over four floors, with basement parking and two ground floor retail suites.

The current site zoning is mixed use and provides for a variety of uses including commercial and residential premises.

AMP Capital Wholesale Office Fund Manager Nick McGrath said he was pleased with the sale of the asset, which delivered upon the fund’s strategy to divest smaller, non-core assets.

In other deals Mirvac is looking to sell 50 per cent of its 275 Kent Street, Westpac headquarters, worth about $410 million and a further $500 million of ”non-aligned” assets to help fund its office and retail projects and recent acquisitions.