Mumbai, July 3 -- Kara Capital has advised a consortium of Japanese corporate investors on the acquisition of a 50 per cent interest in Sydney's World Square office complex, marking another investment by Japanese institutions in Australia's commercial real estate market.
The transaction involves A-Grade office buildings at 680 George Street and 50 Goulburn Street in Sydney's central business district. According to Kara Capital, the acquisition was completed at a valuation representing a 60 per cent discount to the estimated replacement cost, with a capitalisation rate of 7.5 per cent.
The office assets form part of the World Square mixed-use precinct and comprise approximately 67,700 sq m of net lettable area across 45 levels. The buildings are currently 93.4 per cent occupied, with tenants including New South Wales Government departments and other national and multinational organisations.
Kara Capital said the Midtown precinct continues to benefit from improved connectivity through Sydney Metro and light rail infrastructure, while limited future office supply supports the long-term outlook for the market.
The acquisition reflects increasing interest among Japanese corporate investors in Australian office assets as valuations in Sydney and Brisbane stabilise following recent market corrections.
"For Japanese corporate investors, one of the greatest challenges of investing overseas is the information gap," said Nazmi Camalxaman, Managing Director, Kara Capital. "Our mission is to be an honest, transparent, patient and trusted deal sourcing partner for Japanese corporate investors, connecting them with best-in-class managers and highly selective deals so they can invest in Australia with confidence."
Kara Capital said it focuses on supporting Japanese investors by providing market insights and facilitating access to commercial real estate opportunities in Australia.
Published by HT Digital Content Services with permission from Construction World.