- AMP owned 50% of the EY-anchored asset as part of its Capital Wholesale Office Fund
- Co-owner Mirvac has acquired the other 50% at a 12% premium
- AMP says it reflects soaring demand for premium office assets
ASX-listed AMP has announced the settlement of the sale of its Capital Wholesale Office Fund’s (AWOF) 50% interest in the landmark 200 George Street building in Sydney.
Following the competitive sales process that garnered interest from both domestic and overseas investors, the present co-owner, a Mirvac (ASX: MGR) entity, acquired the interest.
The sale of the 33-storey tower totalled $578.5 million, which represents a 12% premium relative to the book value before the sales campaign was launched. This means the tower is valued comfortably at well over $1 billion.
Kit Georheos, the fund’s manager, said the sale of the asset achieved a significant premium for investors while highlighting the strong demand for premium office assets in central locations – extraordinary given the working-from-home boom induced by the pandemic.
“At a significant premium to book value, the sale of 200 George Street is an excellent result for the Fund and its investors and demonstrates the continued strong appetite for prime CBD office assets,” she said.
“This result really highlights the strong capability of the broader real estate team including capital transactions and demonstrates why AWOF continues to lead its peers as Australia’s top unlisted office fund.”
The anchor tenant of the building is EY.
The fund currently has over $7 billion in office assets across Sydney and Melbourne.
AMP Capital, one of the largest and most experienced direct real estate find managers in the Asia Pacific region, has over $23.7 billion in funds under its management.