AMP Capital has completed the sale of its 50% interest in 200 George Street with Mirvac taking up the pre-emptive rights for $578.5m.
The AMP Capital Wholesale Office Fund ran a competitive sales process via Cushman & Wakefield and Savills which attracted significant interest from the major funds platforms with Lendlease shortlisted at c$575m.
The property was developed by Mirvac and AMP with completion back in 2015. The 38,000sqm building is 68% leased to EY with a lease expiry of December 2026 with AGL Energy and Mirvac’s occupying the balance of the space. The distinctive appearance of a closed cavity façade with timber blinds is a world first, generating a golden appearance. The tower is one of the first ‘smart’ office buildings in Australia, with market leading technology that adjusts the internal environment to meet the needs of tenants.
In March 2017, the building achieved Australia’s first Gold WELL-certification, in addition to a 6 Star Green Star As-Built rating, and a 5.5 Star NABERS rating.
Mirvac held its interest on its balance sheet based on a June 2020 Savills valuation of $519m which reflected a cap rate of 4.63%. The Lendlease’s price of $575m is likely to reflect a 4.2% cap rate assuming assuming no market rental growth since the last valuation.
The sale by AMP Capital comes just as the Fund’s independent committee is finalising its view on proposals from alternative Fund Managers, anxious to get their hands on the wholesale office platform. The process has drawn bids from Charter Hall, Dexus, Mirvac, Investa and GPT.
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