Malaysia pension fund KWAP sells Sydney office tower for $246m

The entrance to the Australian Securities Exchange (ASX).

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.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.