AMP Capital, the Sydney-headquartered investment manager, has snapped up 33 Alfred Street, the headquarters of the Australian insurance company AMP Life.
The firm did not disclose the transaction price, but local media reports estimate the price paid for the Sydney property was between A$430 million ($312 million; €300 million) and A$460 million.
AMP Capital used capital from two of its unlisted property funds – AMP Capital Diversified Property Fund (ADPF) and AMP Capital Wholesale Office Fund (AWOF) – to finance the deal.
The property is a 26-storey office tower located in Circular Quay, adjacent to the proposed Quay Quarter Tower at 50 Bridge Street. The acquisition consolidates the ownership of an entire 1.1 hectare block located on Circular Quay.
AMP Life will leave 33 Alfred Street but has committed to space in the Quay Quarter Tower at 50 Bridge Street from 2021.
“We are pleased to announce this transaction, in which the investors in AWOF and ADPF have acquired an A-Grade asset in a premier Sydney CBD location as well as simplifying the development pathway for the exciting Quay Quarter Sydney (QQS) precinct,” said Carmel Hourigan, AMP Capital’s global head of real estate.
Subject to final investor approvals, construction of the QQS project is expected to begin in 2018 and will take approximately three years to complete.