TIAA Henderson invests $265m in Sydney office complex

London-based TIAA Henderson Real Estate has made its second Australia deal in less than a month, acquiring a 50 percent stake in a landmark office complex in Sydney from Mirvac, the Australia-listed property company.

TIAA Henderson Real Estate (TH Real Estate), the $77 billion global alliance between TIAA-CREF and Henderson Global Investors, has acquired a 50 percent stake in an office and retail complex in Sydney from Australia-listed developer Mirvac. The purchase price is said to be in excess of A$300 million ($264.78 million; €210.10 million).

The firm acquired the stake in 101 Miller Street and the connecting Greenwood Plaza retail complex located in north Sydney on behalf of TIAA-CREF.

“The acquisition fits our strategy of owning dominant, well-located, well-leased office and retail properties that cater to today’s occupier needs in the world’s most attractive real estate markets.” Nick Evans, executive director and head of TH Real Estate’s Australia operations said in a statement. 

Spread over 404,174 square feet, 101 Miller Street is a 27-storied office tower located in north Sydney’s central business district. According to TH Real Estate, the tower is 99 percent occupied. Greenwood Plaza is spread over 94,474 square feet, and is fully occupied with several retail and food stores in all its three levels.

Earlier this month, TH Real Estate made its first foray into Australia, with the acquisition of a 75 percent stake in a shopping center in Brisbane for A$416.25 million. The remaining stake is owned by Federation Centres (FDC), an Australian Real Estate Investment Trust.

This deal is not the firm’s first deal with Mirvac either. 

In April this year, TIAA-CREF made its first investment under its A$3. 1 billion joint venture with Mirvac Group, buying a 50 percent stake in an office development project at 699 Bourke Street in Melbourne for A$73 million.

Under the JV, the New York-based investment management company has the exclusive first right to all of Mirvac’s prime office deals developed in Australia for the next three years. TH Real Estate was made responsible for managing TIAA-CREF’s capital for this investment. 

699 Bourke Street served as TH Real Estate’s first asset since it was officially launched in April as a 60:40 joint venture between the US pension, TIAA-CREF and Henderson Global Investors. As of June this year, the now-enlarged platform managed $25.5 billion of real estate assets across 50 countries and mandates.