Foreign buyers absorb half the office deals in 2017

Offshore investors have taken over $8.3 billion of office property transactions in 2017, accounting for over half of the deals which hit $16.2 billion, making 2017 the third highest year on record.

The most active foreign investors were buyers from Singapore, who constitute 18.2 per cent of deals, followed by Hong Kong and the US. The joint venture between Mitsubishi Estate and CLSA contributes to the total through the $229 million acquisition of 130 Pitt Street in Sydney, which also signals what could become a new wave of Japanese capital coming into this market.

Almost 55 per cent of the 2017 deals occurring across the Sydney office markets were due to the availability of Sydney CBD properties and the potential for positive income reversion. Among the major headlines: Dexus and its wholesale fund took over a half-stake in the MLC Centre for $722.5 million while AMP took close to a half stake in the $1.8 billion Wynyard Place development.

Image source: Ryan Stuart

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