Rest acquires stake in iconic Sydney CBD tower

Rest today announced it has entered into a contract to acquire a one third interest in the iconic AMP Centre tower in the Sydney Central Business District, in a deal valued at around $900 million. The remaining interests are owned by the AMP Capital Wholesale Office Fund and AMP Capital Diversified Property Fund.
 
The 43-level tower at 50 Bridge Street in Sydney’s CBD is being redeveloped into a 50-level premium grade skyscraper to be known as ‘Quay Quarter Tower’. The tower forms part of a redevelopment of two city blocks by AMP Capital that will include a shopping plaza and residential accommodation near Circular Quay.
 
Speaking of the acquisition, Rest General Manager Investments, Dr Brendan Casey said “This gives our almost two million members an interest in what is likely to be one of the best office buildings in Australia following the completion of the redevelopment in late-2021.
 
“Opportunities to invest in premium grade Sydney CBD properties of this scale are rare,” said Dr Casey.
 
“The continuing development of Sydney as a global office market, coupled with the location overlooking Circular Quay and premium grade quality of the office development were all factors in our decision to invest.
 
“Consistent with our ongoing objectives, this high-quality investment is expected to generate strong net returns for our members over the long-term,” he continued.
 
AMP Capital Global Head of Real Estate Carmel Hourigan said: “AMP Capital is very pleased to welcome Rest as a key investor in Quay Quarter Tower, a further endorsement of Quay Quarter as a compelling and unique investment opportunity.

On behalf of our investors, we couldn’t be more excited about the start of construction of Quay Quarter Tower, a key part of the project which will realise a once in a generation opportunity to create a globally significant precinct, and a catalyst for the renewal of Circular Quay Sydney.” 

As at 31 December 2017, Rest’s property portfolio comprised equity investments of $4.7 billion; representing around 9 per cent of total member assets.
 
Rest’s directly owned office portfolio in Australia currently includes 52 Martin Place in Sydney, 60 Station Street in Parramatta as well as 140 William Street and 717 Bourke Street in Melbourne.