PGIM sells 25% of Coca Cola Place
PGIM Real Estate have confirmed that it is selling a 25% stake in 40 Mount Street North Sydney to M&G Investments for $109.5M.
PGIM are acting for the South Korea’s National Pension Service who holds a 50% interest in the building alongside Investa's Commercial Property Fund. It is unclear whether PGIM are trading the remaining 25% held by the Pension fund. ICPF hold pre-emptives over the PGIM share and have likely been instrumental in introducing M&G Investments who are already co-investors with ICPF in 400 George St.
The South Korean Pension Service bought its interest in the North Sydney tower stake from Investa for about $113.5m in 2011, effectively doubling its value in 7 years.
Spanning 28,500sq m over 21 floors, the tower houses Coca-Cola Amatil and a mix of quality private sector tenants including Goodman Fielder and Vodaphone.
M&G Real Estate, a unit of British insurer Prudential PLC emerged as a major purchaser of Australian commercial assets in 2006 and has also teamed and Mirvac Group with a 50% interest in the $800m office tower that it is proposed Suncorp will occupy in Brisbane’s CBD.
M&G made its first Brisbane acquisition with the $119.1m purchase of HQ South in Fortitude Valley last year and in December 2016, the firm bought the Casey Centre, in Melbourne, from Scentre Group for more than $220m.
The North Sydney sale is being handled by JLL and Savills.