50% freehold interest in Sydney's MLC Centre on offer
A 50 per cent freehold interest in the MLC Centre at 19-29 Martin place in Sydney’s CBD is being offered for sale via international expressions of interest.
Savills Australia’s Ian Hetherington, Simon Fenn and Ben Azar, and Cushman & Wakefield’s Josh Cullen and Mark Hansen, have been appointed to market the landmark asset.
The expressions of interest campaign for the MLC Centre ends April 11 2019.
The real estate investment trust, GPT Group announced it was selling its 50 per cent share of the MLC Centre in January 2019.
It is speculated the stake could fetch $800 million. It has a $725 million book value.
GPT jointly owns MLC Centre with office landlord specialist Dexus who paid $722 million in 2017 when it was sold by QIC.
The 228 metre tall tower was designed by Harry Seidler.
Mr Hetherington said the campaign was expected to attract interest from all major global investors, as it presented “a rare opportunity to secure an Australian icon”.
Located adjacent to the Sydney Metro project’s new Martin Place station, the MLC Centre comprises 67,408 sqm of prime office space across 57 floors, in addition to 10,305 sqm of prime retail space.
The property occupies one of Sydney’s largest freehold sites.
Mr Cullen said the projected strong rental reversion would be a key selling point for prospective buyers.
“Coupled with falling vacancy rates, the current market conditions in Sydney are poised to encourage positive rental reversion,” he said.
Mr Azar said the MLC Centre presented significant future upside opportunities through its DA-approved retail redevelopment, which will expand the retail offering on the site and utilise the 255-metre prime street frontage, especially along King and Castlereagh streets.
“The improvements seek to increase pedestrian foot traffic through the activation of laneways, and revitalise the heart of the MLC Centre to provide a more attractive precinct for tenants and visitors.”
