Malaysia’s second largest pension fund, Kumpulan Wang Persaraan (KWAP), has sold a grade A office tower, located in Sydney’s 20 Bridge Street, for about $246.4 million (A$340 million) to a Hong Kong-based wealthy individual.
The yield for the office tower is learnt to be 4-4.5 per cent, a record return for a 20,390 sq m property in Sydney’s business district.
The property has Australian Securities Exchange (ASX) as its anchor tenant occupying close to half of the building, also known as the Exchange Centre.
Australian commercial real estate company Investa has been managing the asset that was put up for sale in March this year through real estate advisory firm Savills, according to a report from Australian Financial Review last week.
KWAP had acquired the building at A$185 million in 2011 at an occupancy rate of 84.8 per cent in a distressed sale.
KWAP has not formally announced the sale of the asset nor has it mentioned the disposal on its website. An email to the pension fund on the sale went unanswered. It is not known where KWAP wishes to invest the proceeds of the asset sale.
Last year, KWAP sold a London office building to Hong Kong-based private investor Shaw Foundation.
Meanwhile, the pension fund has also been building up its assets in property. Recently, it bought into Eastern & Oriental Bhd’s project Seri Tanjung Pinang which involves a huge reclamation of land and a development that spans over 20 years.