A 50/50 joint venture between Investa Commercial Property Fund (ICPF) and Manulife, have acquired the right to a 100% interest in 39 Martin Place, Sydney. The CBD office development is currently owned by Macquarie Group Limited.
The new development will include 30,000 square metres of office space across 28 floors and 2,000 square metres of retail. Martin Place is a pedestrianised street cutting across the centre of Sydney’s central business district and the development will sit directly above the southern entrance of the new Martin Place metro station.
When completed in 2024 the office building and retail space will be part of the Martin Place integrated station development and the complex is designed to provide premium-grade services and large floorplates. The building will also boast strong sustainability credentials including a 6-star Green Star office design rating and 5.5 star NABERS rating.
ICPF focuses on investments in core prime offices in major Australian CBD markets. The fund’s portfolio of 15 office assets is valued at around $6bn.
ICPF Fund Manager, Brendan Looby commented, “The acquisition of 39 Martin Place is in line with the fund’s strategy given the superior building quality, super prime location, leading sustainability and technology features.”
Mr. Looby also commented on the leasing potential of the development, saying, “We have high confidence in the Sydney CBD office market and believe 39 Martin Place is well placed to attract a suite of high-quality users.”
ICPF’s partner is Manulife, a multinational insurance company and financial services provider, which has been actively investing and pursuing opportunities in Australia since 2017 via direct and indirect investments in the Australian office and logistics sector.
Kenny Lam, Senior Managing Director, Head of Asia Real Estate Investments for Manulife said that the firm was excited to partner with ICPF on the investment. He commented that despite some of the headwinds resulting from the pandemic, Manulife is continuing to focus its expansion efforts on the Asia Pacific region and high-quality assets, given their strong long-term macro and demographic prospects.
The building is being constructed by LendLease and is the latest investment for ICPF, following the recent completion of the Sixty Martin Place development, delivered jointly by ICPF and Gwynvill.