A joint venture between, Australian real estate investor, EG, and Singapore’s sovereign wealth fund, GIC, has acquired two A-grade office buildings in Sydney Olympic Park for $66.1m. The Quad 2 building at 6 Parkview Drive and Quad 3 building at 102 Bennelong Parkway were bought from Growthpoint Properties Australia following an expression of interest campaign run and negotiated by Knight Frank and GJS Property.
The acquisition is the first deal for EG’s Urban Regeneration Joint Venture which has the initial capacity to buy up to $400m of commercial property.
Located 12.5km west of the Sydney CBD, the site totals 1.44 hectares and offers 9,992 sqm of office space and 283 car parking spaces. The properties were acquired on a net passing yield of 7.2%.
“The modern A-grade properties are well located within the Sydney Olympic Park precinct which is set to benefit from the construction of major infrastructure projects including the Sydney West Metro which will see the precinct directly connected to the Sydney and Parramatta CBD’s via a new station,” said EG’s Head of Capital Transactions, Sean Fleming. “In addition, the recently opened West Connex Project has also seen improved vehicular connectivity to the precinct.”
The initial A$400m for the Urban Regeneration Joint Venture, was announced in September 2020 and the fund plans to mirror the success of EG’s Yield Plus Infrastructure Fund No. 2 (YPI2) which followed a strategy of acquiring income producing real estate near new or upgraded transport infrastructure.
“We’re pleased to secure the first asset in this new $400m program with our partner, a global long-term investor, continuing EG’s proven track record in revitalising assets and neighbourhoods,” said EG’s Executive Director Roger Parker.
Founded in 2000, EG has $3.2bn under management on behalf of super funds and private wealth clients.