Investa bolsters Sydney assets

Investa Property Group has acquired a 75 per cent interest in an A-Grade office building in Sydney’s CBD for $442.5 million, on a core yield of 5.3 per cent.

The interest in the office building at 420 George Street was sold by Fortius Funds Management.

Fortius developed the property in 2010 with Lendlease, which will retain its 25 per cent interest.

The 31-level building has a net lettable area of 37,688 sqm and was awarded a five star Green Star Design and As-Built rating . It is 100 percent occupied with tenants including AECOM, State Street and JLL.

Situated adjacent to the Pitt Street Mall and the Mid City Shopping Centre, the property will have direct access to the proposed Sydney CBD light rail.

“The building is a good fit with the fund’s long-term portfolio strategy, delivering further diversity in investment exposure, income stream and tenancy base, while bolstering its exposure to Sydney, within our strategic range, ” says Investa group executive and fund manager Peter Menegazzo.

The sale of 420 George Street follows Fortius’ purchase late last year of a Brisbane CBD building at 201 Charlotte Street. Fortius CEO Nicholas Sproats says the company is now looking at other Sydney and Melbourne opportunities.