The commercial property market is set for another big test as US group LaSalle Investment Management puts its stake in ANZ’s Sydney headquarters on the block in a deal likely to show that the stake is worth more than $1 billion.
The funds manager drafted JLL to offer the quarter stake to institutions in a move likely to show a sharp lift in values since developer Grocon sold its 25 per cent stake two years ago to Industry Superannuation Property Trust for $200 million.
Grocon won plaudits for the development, one of Sydney’s latest premium grade office buildings situated over two street frontages, 161 Castlereagh Street and 242 Pitt Street, in the midst of the global financial crisis.
The unlisted GPT Wholesale Office Fund has a 50 per cent interest in the tower. GPT and ISPT both hold rights over the LaSalle stake, but external bidders would also enter the contest on an even footing, executives said.
The offer comes as one of the biggest direct commercial property sales in Australia’s history is expected to close this week. GPT, unlisted stablemate GPT Wholesale Office Fund and AMP Capital are to close deals to buy just over $1bn worth of office towers in Melbourne from Cbus Property. The forthcoming sales, handled by Colliers International and Savills, will mark the resurgence of Australian capital for prime office towers.