- Quay Quarter Tower is a redevelopment of the old 45-floor AMP Tower
- Compeltion was complted in April of this year
- Ongoing lease payments, to help offset the impact of volatility and broader inflation, notes Rest's
Australian superannuation fund REST has acquired a one-third stake of the recently completed Quay Quarter Tower in Sydney’s CBD, as part of its strategy to further diversify its investment portfolio.
At 50 floors high, Quay Quarter Tower is an innovative redevelopment of the old 45-floor AMP Tower located at 50 Bridge Street, Circular Quay.
Now the tower has about 89,000 sqm of office space, of which 95% is already leased, and around 4,000 sqm of retail space.
The building also has a 5.5 star NABERS Energy Rating, a 6-Star Green Star Design & As Built rating from the Green Building Council of Australia.
“With the acquisition of the stake in Quay Quarter Tower, around 1.8 million Rest members now have an interest in a state-of-the-art, premium-grade skyscraper overlooking Sydney Harbour,” said Rest Deputy Chief Investment Officer Simon Esposito.
“This landmark property is expected to generate strong long-term net returns for our members. With nearly all the office space leased under long-term arrangements, it offers a secure income stream.
Simon Esposito, Rest Deputy Chief Investment Officer
“In the past six months we have experienced significant levels of inflation not seen for some time, as well as volatile share markets.
“Investments in property assets like these can provide important stability and resilience to an investment portfolio, especially in periods where share markets are volatile and fixed income returns are weaker.
“Property assets can typically generate income that tracks inflation, such as ongoing lease payments, to help offset the impact of volatility and broader inflation.”
Rest has around $6 billion invested into unlisted property, including office buildings, retail shopping centres, industrial warehouses and residential apartments both across domestic and offshore markets.
Rest’s Core Strategy investment option allocates 11% to property.
Construction of the tower was completed in April, with sustainability a large focus of the project.
About 68% of the original tower’s core structure was retained, including 95% of the internal structure walls. While the leasable space doubled.
“By upcycling much of the original structure and reusing materials, more than 8,000 tonnes of embodied carbon were saved during construction. That’s the equivalent of 35,000 airline flights from Sydney to Melbourne,” said Leilani Weier, Head of Responsible Investment & Sustainability, Rest.
“As part of our roadmap to achieving a net zero carbon footprint for the fund by 2050, Rest is aiming to have our directly owned property assets achieve net zero carbon emissions in operation by 2030 in accordance with the WorldGBC’s Net Zero Carbon Buildings Commitment.
“Environmental ratings, including a 5.5 Star NABERS Office Energy Rating Base Building, 4 Star NABERS Office Water Rating Base Building and WELL certification, all contribute to Rest reaching our broader responsible investment ambitions.”