M&G Real Estate buys into North Sydney Coca-Cola headquarters for $109.5 million
M&G Real Estate, the real estate fund management arm of UK-based M&G Investments has acquired a 25 per cent stake in the North Sydney office building, “Coca Cola Place” for $109.5 million.
The sale represents half of owner South Korea’s National Pension Service’s stake in the building, which has been for sale since November, along with the pension fund’s other asset, Melbourne’s 595 Collins Street.
The pension fund co-owns 50 per cent of the building with Investa’s unlisted trust, the Investa Commercial Property Fund (ICPF).
The A-grade commercial property at 40 Mount Street is the headquarters for Coca-Cola Amatil Australia, New Zealand and South Pacific and is also home to another anchor tenant Vodafone.
The acquisition represents the second Sydney office deal M&G Real Estate has struck with ICPF, following its co-acquisition of 400 George Street in the CBD in 2006.
M&G Real Estate’s core Asia Property strategy manager Richard van den Berg said the tightening office vacancy in North Sydney – particularly due to displacements caused by infrastructure development – was the motivation for the deal.
“Australia’s economy continues on a positive trajectory and demand for modern office assets continues to increase as vacancy rates in North Sydney are expected to tighten from 6.1 per cent in mid-2018 to 5.7 per cent by the end of 2018 due to positive leasing activity,” he said.
The 25-storey “Coca Cola Place” was built in 2010 and has a 28,552sq m of retail and office space.
It will be walking distance to the future Victoria Cross Metro Station, Sydney’s fast train service which will connect commuters to the Sydney CBD in nine minutes.
