LaSalle Investment Management has acquired a major Sydney tower in Castlereagh Street for $325m as opportunities in the CBD are drying up.
The B-grade tower at 323 Castlereagh Street, known as Central Square comprises a 24-storey building featuring large 1,200sqm floor plates providing approx 26,295sqm in NLA.
The building sits on a large 2,809sqm site within 200 metres of Central Station and the light rail line. The building, which was built by Lend Lease in 1972 and last refurbished in mid-2018, is home to Legal Aid NSW. It is understood the property will provide a passing yield of under 4% as a result of there being at least 3 floors current for lease and a strong reversion to the market rent on the remaining space.
LaSalle will look to capitalise on the tightening office market with a re-positioning of the property as part of its core-plus strategy.
LaSalle have been fielding strong investment appetites from its investors particularly American, Japanese and Korean pensions funds.
The deal was brokered by Knight Frank on behalf of the Vendor, MKH Properties, who have held the property since 1993.
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