AMP Capital Fund sells stake in Sydney office tower for $423m

A fund managed by AMP Capital Fund has sold a 50 percent stake in a Sydney-located office tower to M&G Real Estate Asia for A$575 million ($423 million), reported The Sydney Morning Herald.

M&G Real Estate Asia will co-own the 33-story office tower located at 200 George St. in Circular Quay with Mirvac.

Metropolitan office markets across Sydney have the potential for significant new supply over the next five years, reported Cushman & Wakefield. During the 2021 to 2025 period, possibly 29 major projects, comprising nearly 850,000 square meters (9.1 million square feet) of new space, may complete. In 2021, three developments totaling around 180,000 square meters (1.9 million square feet) are scheduled for completion, all at Parramatta.