Far East Consortium pays $151.8m for Sydney’s Ausgrid | afr.com
Mar 8 2014 at 7:52 AM
Updated Mar 10 2014 at 11:32 AM
Far East Consortium pays $151.8m for Sydney’s Ausgrid
by Rebecca Thistleton Asia-based Far East Consortium
has paid $151.8 million for the Ausgrid building at 570 George Street in Sydney’s CBD.The site is expected to be developed into a residential or hotel project and is the latest in a string of high-profile Australian acquisitions for Far East.The site went on the market in mid-2013 and price expectations started around $120 million.Throughout the sales campaign, industry sources speculated it could sell for as much as $200 million because of the potential for apartment development and high competition from eager local and offshore developers.
NSW Finance Minister Andrew Constance
said the sale figure exceeded the building’s retention value. He said the building could be converted to a residential, hotel or retail project, subject to planning approval.
The Ausgrid site could be the next in a series of Sydney commercial buildings to be converted to today’s highest and best use – residential development.Sites in the CBD and North Sydney are being marketed for their development potential, particularly as office vacancies are above average levels.Sydney office blocks are selling at premiums to residential developers and have drawn interest from offshore groups with access to cheaper capital, who can then afford to build at a smaller profit margin.China’s Greenland Group
and Singapore-backed Frasers Property
were also said to be interested in the site.
Far East Consortium has bought more than $1 billion worth of Australian property for redevelopment and has signed up Toga Hotel group as a joint venture partner to establish hotels around south-east Asia.In February, The Australian Financial Review revealed that Far East Consortium was the buyer of 50-58 Park Street in the city in a deal close to $130 million.The sale price was a 42 per cent increase on the $89 million Kyko Group paid for the building in 2011.Late last year, Far East paid $145 million for Valad Property Group’s B-grade office block at 227 Elizabeth Street, an increase of more than 28.3 per cent on its 2007 purchase. The 23-storey building came with development approval for 114 units and came to market with price expectations around $120 million.
In October last year, Far East Consortium bought Perth’s Harbour Town Centre for $205 million and the Clocktower Square in Sydney for $72 million.The NSW government placed the Ausgrid building on George Street on the market along with the sandstone Lands and Education buildings on Bridge Street last year. The sandstone buildings have attracted keen interest from luxury hotel developers from Asia, Europe and the Middle East.The government assets were listed with Macquarie Capital.
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Far East Consortium pays $151.8m for Sydney’s Ausgrid | afr.com
Mar 8 2014 at 7:52 AM
Updated Mar 10 2014 at 11:32 AM
Far East Consortium pays $151.8m for Sydney’s Ausgrid
by Rebecca Thistleton Asia-based Far East Consortium
has paid $151.8 million for the Ausgrid building at 570 George Street in Sydney’s CBD.The site is expected to be developed into a residential or hotel project and is the latest in a string of high-profile Australian acquisitions for Far East.The site went on the market in mid-2013 and price expectations started around $120 million.Throughout the sales campaign, industry sources speculated it could sell for as much as $200 million because of the potential for apartment development and high competition from eager local and offshore developers.
NSW Finance Minister Andrew Constance
said the sale figure exceeded the building’s retention value. He said the building could be converted to a residential, hotel or retail project, subject to planning approval.
The Ausgrid site could be the next in a series of Sydney commercial buildings to be converted to today’s highest and best use – residential development.Sites in the CBD and North Sydney are being marketed for their development potential, particularly as office vacancies are above average levels.Sydney office blocks are selling at premiums to residential developers and have drawn interest from offshore groups with access to cheaper capital, who can then afford to build at a smaller profit margin.China’s Greenland Group
and Singapore-backed Frasers Pr
operty
were also said to be interested in the site.
Far East Consortium has bought more than $1 billion worth of Australian property for redevelopment and has signed up Toga Hotel group as a joint venture partner to establish hotels around south-east Asia.In February, The Australian Financial Review revealed that Far East Consortium was the buyer of 50-58 Park Street in the city in a deal close to $130 million.The sale price was a 42 per cent increase on the $89 million Kyko Group paid for the building in 2011.Late last year, Far East paid $145 million for Valad Property Group’s B-grade office block at 227 Elizabeth Street, an increase of more than 28.3 per cent on its 2007 purchase. The 23-storey building came with development approval for 114 units and came to market with price expectations around $120 million.
In October last year, Far East Consortium bought Perth’s Harbour Town Centre for $205 million and the Clocktower Square in Sydney for $72 million.The NSW government placed the Ausgrid building on George Street on the market along with the sandstone Lands and Education buildings on Bridge Street last year. The sandstone buildings have attracted keen interest from luxury hotel developers from Asia, Europe and the Middle East.The government assets were listed with Macquarie Capital.
Mike Smith's $2m Toorak haircut Seeking Baby Boomers for rural venture Toronto next? Housing market may need cooling India poised to unlock billions for roads, power investing Netflix, Amazon fuel office space demand Latest Stories