LaSalle Investment Management has acquired a major Sydney tower in Castlereagh Street for $325m as opportunities in the CBD are drying up.
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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.
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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.
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LaSalle will look to capitalise on the tightening office market with a re-positioning of the property as part of its core-plus strategy.
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LaSalle have been fielding strong investment appetites from its investors particularly American, Japanese and Korean pensions funds.
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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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