Sydney's largest completed office building transaction of 2009 highlights the growing interest from overseas funds in securing prime commercial property investments in Australia’s key CBD markets, according to global property advisor Savills.
Savills NSW Managing Director Michael Andrews negotiated the $137 million sale of Charter Hall Group’s The Atrium complex in Pyrmont to Swiss-based AFIAA Foundation for International Real Estate Investments
The acquisition represents the first Australian investment for AFIAA, which has a diversified global property portfolio.
Savills’ Mr Andrews said the landmark sale is the largest commercial property transaction in Sydney for more than 18 months.
Mr Andrews, who regularly travels to Europe to present to international real estate funds, said the Atrium transaction shows a greater alignment of vendor and buyer expectations in the recovery from the global economic downturn.
“This sale is reflective of the quality of the property and tenant covenant along with its positioning, and the keen interest from overseas funds in securing prime opportunities in Australia’s key CBD markets,” he said.
“The fundamentals of our market are regarded as strong on the world stage. Quality investment opportunities such as Atrium, with its prime location, tenant mix and long-term WALES, are attracting solid international interest, as evidenced by AFIAA making its first foray into the Australian market through this acquisition.”
Mr Andrews said the sale to Zurich-based AFIAA was a direct result of a strong focus on the European market by Savills’ Capital Investments team.
