PGIM Real Estate to sell 595 Collins Street
Interests associated with a Hong Kong group have emerged as the prospective buyer for PGIM Real Estate tower at 595 Collins Street. The tower, which is held by PGIM (previously known as Pramerica) on behalf of the Koren National Pension Service is expected to sell for about $315M with a yield of circa 5%.
According to agents, the building is 96% leased generating about $15M pa.
The South Korean fund bought the Melbourne complex in 2011, taking a 90 per cent stake in 595 Collins Street from Investa and a fund it ran, in a deal valuing the whole asset at about $130m until in 2015, PGIM took full control. The original deal was reported as reflecting an 8% yield.
The 17-storey building, which sits on a near 4,000sqm site, was completed in 1984 and has 31,778sqm of space made up of two interconnected office towers, three ground-floor shops and 145 basement car spaces. In 2007, the building had a major refurbishment.
The group are also selling its half stake in 40 Mount Street, the prominent A-Grade office building in North Sydney known as Coca Cola Place.