A 25% stake in Sydney Landmark Office Tower sold for $300m

18 December 2020

Investa Property Group have sold their minority interest in 400 George Street Sydney to co-owner M&G Real Estate for $300m.

M&G acquisition price equates to a 4.6% yield and effectively values the 100% interest at $1.2bn.

The A Grade Office Building comprises 51,000sqm of NLA with average floor plates of 1.650sqm. The building is predominantly leased to Telstra and Mills Oakley lawyers.

The building was M&G’s first co-investment with ICPF when they jointly acquired the asset in 2006. China Investment Corporation, acquired its 50% stake in the asset from Investa in 2016 as part of the portfolio sale of interests in 9 Investa assets in Sydney, Melbourne and Brisbane.

M&G has another co-investment with ICPF in a North Sydney commercial building, bought in 2018. The Group also acquired a 50% interest in 80 Ann Street with Mirvac and wholly owns 512 Wickham St Fortitude Valley and Casey Central Shopping Centre in Victoria.

M&G is effectively the real estate investment arm of Prudential plc in the UK and Europe and is one of the world’s top 30 property investors with more than £33 billion of assets in real estate equity and more than £5 billion of real estate debt on behalf of our clients.