M&G Real Estate teams up with Investa Commercial Property Fund to increase Australian exposure

M&G Real Estate has acquired a 25 percent stake in 40 Mount Street, an class A office building in New South Wales, Australia for A$109.5 ($78.77 million).

The transaction is a second joint venture with ICPF, an Australian commercial office fund and a long-term strategic partner of M&G Real Estate. It was made on behalf of M&G’s core Asia property strategy.

The investment also represents M&G Real Estate’s second office investment in Sydney following the 400 George Street acquisition with ICPF in 2006. Demand for office space particularly in North Sydney’s central business district remains strong due to continued infrastructure and residential development, growth of the finance, business services and technology sectors, and supply constraints up to 2020.

Also known as “Coca Cola Place”, the property was built in 2010 as a modern office and retail building strategically positioned at the core of North Sydney’s CBD. The building comprises