Superannuation fund ISPT has taken a half-stake in Sydney's landmark Westpac Place for $721.9 million after Mirvac assigned its rights to the tower's half-interest.
The superfund picked up 100 per cent of units in a Mirvac-run trust which controls the 50 per cent stake in the 275 Kent Street asset.
Blackstone, the world’s largest owner of real estate, listed its half share in January.
Property group Charter Hall initially seemed the most likely to pick up Blackstone's stake after undertaking due diligence on the tower.
Blackstone has since traded some of its other holdings within its Australian portfolio but it has also purchased industrial, retail and office properties, building a real estate empire worth about $6 billion locally.
Mirvac said ISPT matched the company’s asset management and development strategy for the building. Mirvac will retain management rights of the asset.
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Westpac Place is considered a prize asset as the award-winning building with 77,503sq m of office space, large floor plans and a 6-Star Green Star rating.
The deal now means the commercial tower is valued at more than $1.7 billion, underscoring the depth of domestic demand for centrally located prime office blocks.
“275 Kent Street is an exciting acquisition for the ISPT Core Fund aligning with our strategy to acquire quality investment grade assets with strong income security,” ISPT Core Fund manager Mark Bassett said.
“The asset will provide exposure to a prime Sydney CBD office asset and increase the Fund’s lease expiry profile.”
“ISPT is also looking forward to continuing our capital partnership with Mirvac.”
The settlement is scheduled for July 2018.