- Hong Kong-based Link Asset Management agrees to form a joint venture with Oxford Properties Group in the Investa Gateway Office (IGO) venture
- Link will own a 49.9 per cent stake, while Oxford will hold a 50.1 per cent stake in the venture that consists of five prime office assets valued at $2.3 billion
- The purchase price of the 49.9 per cent interest in the joint venture is $596 million, for a headline price of $1.131 billion
- Link CEO George Hongchoy says IGO is one of the highest quality Australian office real estate portfolios to be offered to the market in recent years
- Oxford Head of Australia Alec Harper says the venture has created “significant value and achieved a high performing de-risked portfolio”
Hong Kong-based Link Asset Management has formed a joint venture with Oxford Properties Group in the Investa Gateway Office (IGO) venture, which consists of a prime office portfolio worth over $2.3 billion in Australia.
Link will own a 49.9 per cent stake, while Oxford will hold a 50.1 per cent stake in the venture that consists of five prime office assets in Australia’s core markets of Sydney and Melbourne. The portfolio will continue to be managed by Investa.
The purchase price of the 49.9 per cent interest in the joint venture is $596 million, for a headline price of $1.131 billion.
Link CEO George Hongchoy said IGO is one of the highest quality Australian office real estate portfolios to be offered to the market in recent years.
“We are delighted to partner with two firms that have deep conviction and connections in the Australian market and further strengthen Link’s presence in the country,” he said.
“The Australian economy has been highly resilient and the investment in one of its highest quality prime office portfolios provides immediate scale, positions us strongly for the next cycle and aligns with our Vision 2025 growth strategy of diversifying and improving our portfolio mix in the region.”
The transaction is expected to complete in the first half of 2022 with the deal brokered by CBRE’s Greg Hyland, Stuart McCann and Flint Davidson.
Oxford Head of Australia Alec Harper said the venture has created “significant value and achieved a high performing de-risked portfolio”.
“Following on from the recent investment by Mitsubishi Estate into our Parkline Place project, today’s transaction further demonstrates the continued global institutional demand for prime and highly sustainable office product,” he said.
“Oxford will redeploy capital from the transaction into our prime office develop-to-core pipeline and build-to-rent develop-to-core investment strategy in Australia, where we continue to have a favourable long-term outlook.”