By: Ted Tabet
Credit Suisse Asset Management has sold 400 Kent Street in Sydney's CBD for $111.8 million on a yield of 4.5 per cent, taking advantage of the surging Sydney commercial real estate market.
The 11-storey tower had been under Credit Suisse’s global real estate arm since 2014 after being purchased from two Charter Hall funds for $58 million.
Hong Kong investor Longbow Holdings will now take ownership of the building comprising 10,461sqm of premium office space.
The building is fully leased to the Central Queensland University with a 14.5-year weighted average lease expiry.
The building was extensively refurbished in 2003 and has recently been upgraded with $3 million spent on a plant and equipment overhaul.
The sale was brokered by Cushman & Wakefield’s Mark Hansen and Richard Butler.
Hansen emphasised the strong interest in Sydney CBD office assets from a broad spectrum of global investors, especially those based in Hong Kong and Macau.
Sydney's tightly held office market has continued to appeal to international groups with strong investor demand underpinned by the limited availability of commercial stock.
''We are currently seeing a renewed interest from Singaporean investors targeting investment assets to diversify their income streams,'' Cushman & Wakefield’s Mark Hansen said.
Earlier this year, Hong Kong investor KHI Holdings acquired 277 William Street in Melbourne's CBD for $93.88 million from real estate fund manager EG.