Singapore commercial trust to invest in Sydney tower

Mirvac is poised to sell a 50% stake in its under-construction 8 Chifley Street, Sydney office tower to listed Singapore commercial investment real estate trust K-REIT for $150 million.

The deal is due to be completed before the end of July.

K-REIT, a subsidiary of the Keppel Land Group, has adopted a strategy of making accretive acquisitions of office buildings, according to The Australian.

In May K-REIT purchased an additional four floors of the 30 storey Prudential Tower at 30 Cecil Street in Singapore, bringing its total ownership of the building to more than 92%.

It already owns the 18-storey 77 King Street tower in the Sydney CBD, which it purchased last year for $118 million, as well as a 50% stake in the 32-storey 275 George Street in Brisbane, purchased from Charter Hall in 2009 for $166 million.

Number 8 Chifley Street, a 30-storey office tower in the heart of Sydney, is due for completion in 2013 at a cost of $300 million.  Upon completion it will have 19,000 square metres of net lettable space.

Mirvac is yet to announce any prospective tenants for the building.

The premium grade building is designed by architect Rogers Stirk Harbour + Partners and Lippmann Associates in association with Mirvac Design.

Sydney CBD prime gross office rents are set to rise to an average of $849 per square by January 2012, according to an autumn 2011 report by the Property Council of Australia and Macquarie Bank.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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