Ivanhoé Cambridge Enters Australian Market
- Apr 15, 2015
Ivanhoé Cambridge and Blackstone Property Partners Asia have partnered to acquire a 25 percent interest in Liberty Place, a 42-story office tower complex in Sydney, Australia, from Lasalle Investment Management, for $183.25 million.
This is Ivanhoé Cambridge’s first acquisition in Australia.
“We are enthusiastic about the opportunity to invest in Australian real estate,” Rita-Rose Gagné, Ivanhoé Cambridge’s executive vice president, growth markets, said in a company statement. “Blackstone’s strong knowledge of the Australian market and its established presence in Australia have been key to the success of this transaction.”
Originally completed in 2013, Liberty Place is located at 161 Castlereagh through 242 Pitt St., in the heart of Sydney’s Midtown. It houses law firm Herbert Smith Freehills and the Boston Consulting Group.
The property features 647,729 square feet of office space and 47,630 square feet of retail space. The building is currently 97 percent leased.
According to CBRE’s latest Global Office Rent Cycle report, the office market in the Sydney Central Business District is bottoming out and is expected to record positive rental growth in 2015. Overall, the Sydney CBD market experienced a 21 percent increase in inquiry volume in 2014.
“Encouragingly, the market also saw a healthy jump in the number of deals transacted during 2014, with deal flow increasing by close to 20 percent,” Jenine Cranston, CBRE’s senior director, office services, said in the report. “This affirms the more positive sentiment in the market, with far more genuine engagement, which has carried over into 2015.”
According to Gagné, Ivanhoé Cambridge will continue to explore the possibilities of increasing its investments in Australia and in other parts of the Asia-Pacific region in 2015.
Ivanhoé Cambridge holds assets located mainly in Canada, the United States, Europe, Brazil, Mexico and Asia, which totals more than $42 billion.
Ivanhoé Cambridge has also recently acquired 3 Minster Court, a 275,000-square-foot building in London for approximately $256.4 million