Stake in Sydney's MLC Centre for sale at $700m
A half-stake in Sydney’s tallest office tower designed by Harry Seidler is up for sale with expectations it will achieve $700 million, placing the property in a select group of office towers that are worth more than $1 billion.
QIC Global Real Estate has decided to sell its 50 per cent stake in the 62-level MLC Centre with its unrivalled 8148-square-metre site on Martin Place.
“We anticipate this will be one of the largest transactions in Australia,” QIC Global Real Estate managing director Steven Leigh said.
“Strong leasing conditions in Sydney, coupled with a supportive capital market, provides us with the desired settings for a successful sale,” he said.
The retail component of the MLC Centre comprises 5228 square metres over three levels. Photo: Supplied
Mr Leigh said QIC had taken the decision to sell the asset due to a portfolio reweighting.
The 50 per cent stake in the property at 19 Martin Place will be offered through an international expressions of interest campaign, closing at the end of May, through JLL and Savills.
The JLL team is being led by Rob Sewell and Simon Rooney, while the Savills team is being led by Ian Hetherington.
“Office assets of this calibre and profile are rarely offered to the market, particularly at a time when JLL Research is forecasting prime net effective rental growth of a combined 35 per cent over the next three-year period,” Mr Sewell said.
The MLC Centre, which has a NABERS Energy Rating of five stars, is bound by three key Sydney streets – Martin Place, Castlereagh Street and King Street and offers further development potential on the Castlereagh and King Street sides.
The MLC Centre is also home to the Theatre Royal. Photo: Supplied
Mr Hetherington said the MLC Centre was recognised internationally as one of the landmark office buildings in Australia.
“This 50 per cent stake will attract a lot of interest from both domestic and international investors,” he said.
The 68,289-square-metre tower is home to major tenants such as NSW state government, GPT Group, Holding Redlich, Pitcher Partners and the Sparke Helmore.
The retail component comprises 5228 square metres over three levels, including high-end fashion labels such as Longchamp and Jimmy Choo fronting Castlereagh Street.
The MLC Centre is also home to Sydney’s Theatre Royal which has hosted some of Australia’s major musical productions.
