Standard Life Investments has made its second direct investment in the Asia Pacific property market with the acquisition of a property in Sydney, Australia for AU$26 million ($22.5 million, €15.5 million).
The office and commercial property was acquired from GE Real Estate Investments. SLI’s Select Property Fund made the acquisition.
The building, located at 16 Spring Street in Sydney’s central business district, comprises a net lettable area of 3,135sqm with 10 upper floors of office accommodation and ground and mezzanine retail space. Tenants include Malaysian Airlines, Consulate of Malaysia and The Malaysian Trade Commission.
SLI made its first direct investment in the Asia Pacific property market In May 2007 with the
acquisition of a property in the central business district of Perth, Australia for AU$47m. That property was purchased with the Select Property Fund from Colonial First State Global Asset Management.
“This acquisition cements the £1.4 billion Select Property Fund’s strategy as truly global,” said Andrew Jackson, Manager of the Select Property Fund, in a statement. “In addition to REIT and listed property company holdings in North and South America, as well as throughout Europe and across Asia Pacific, the Select Property Fund now has more than 20% of its portfolio invested in direct property investments in Europe and Asia Pacific.”
The Sydney office market is presently benefiting from strong occupier demand at the same time as a there exists a muted development supply pipeline. Perth is also experiencing an undersupply of office space in the face of an increasing demand, both due in part to Australia’s commodities boom.