Rest announced it has entered into a contract to acquire a one-third interest in the AMP Centre tower in the Sydney central business district, soon to become the ‘Quay Quarter Tower’, in a deal valued at $900 million.
General manager of investments at Rest, Brendan Casey, said adding the tower to its $4.7 billion property portfolio would provide Rest’s almost two million members with an interest in what would likely become premium office space following its completion in late 2021.
“Opportunities to invest in premium grade Sydney CBD properties of this scale are rare,” said 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.”
The tower, which would be redeveloped into a 50-level premium grade skyscraper, forms part of a redevelopment of two city blocks by AMP Capital that includes a shopping plaza and residential accommodation near Circular Quay.
Casey said he expected the high-quality investment to generate strong net returns for their members over the long-term.
AMP Capital’s global head of real estate, Carmel Hourigan, said Rest’s position as a key investor would serve as further endorsement for the Tower as a unique investment opportunity.
The remaining interests are owned by the AMP Capital Wholesale Office Fund and AMP Capital Diversified Property Fund.