The HKMA and the Singapore Sovereign Fund have both put Billions into Australian real estate in 2019

 As reported on 28 August 2019 by…

HK central bank buys into Wynyard Place

August 28, 2019

by Nelson Yap

3 min read

 

AMP Capital is believed to have increased its stake in the AU$1.8 billion Wynyard Place development to 75%, in a circa AU$450 million (HK$2.3 billion approx.) deal on behalf of the Hong Kong Monetary Authority.

 Currently under construction, the 75,000 sqm Wynyard Place precinct will be centred around a 59,000 sqm, 27 level office tower at 10 Carrington St, and also comprise heritage buildings Shell House and 285 George St which are both being restored, and an upgrade to the George St entrance of Wynyard train station.

 The Hong Kong Monetary Authority’s one-quarter share in the project will add to its interest in the $2.6 billion International Tower 1 at Barangaroo. It acquired 25% from Lendlease in 2016 for AU$350 million, (approx. HK$1.84 billion) and added an additional 10% earlier this year for AU$200 million.(Approx. HK$1.056 billion)

Last year, the Hong Kong Monetary Authority  teamed up with Lendlease’s unlisted Australian Prime Property Fund Commercial to acquire the timber Barangaroo South commercial development, Daramu House, for around AU$250 million (around HK$1.32 billion)  from Lendlease. 

This latest transaction comes hot on the heels of Singapore’s sovereign wealth fund GIC acquiring a 25.1% stake in the Barangaroo office towers earlier this month. It comes after GIC sold 50% interest in Chifley Tower to Charter Hall for $900 million. 

Other notable transactions include Blackstone paying $1.52 billion for the 100 Market St and 77 and 85 Castlereagh St towers

Hong Kong billionaire Francis Choi bought out Cromwell to take full ownership of Northpoint Tower for $300 million; as did Dexus with co-owner GPT for the MLC Centre for $800 million; GPT forked out $531 million for a 25% interest in the Darling Park 1 & 2 and Cockle Bay Wharf complex; US fund manager Starwood Capital and Arrow Capital bought The Zenith Centre for $438.2 million, and Charter Hall spent $804 million on two King Street Wharf office buildings, just to name a few.

A recent report by Cushman & Wakefield found commercial property transactions soared by 22% in the 2019 financial year to $42.6 billion. It was underpinned by office deals which accounted for $23.1 billion of total sales, up 22.6%. 

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