GIC grows Beijing, Sydney office exposure

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Singaporean sovereign wealth fund GIC has invested in two office assets in Sydney and Beijing this week, betting on emerging office markets across both cities.

The Lize Financial Business District building

The fund bought a 50% stake in a 42-storey grade A office building in Beijing’s Lize Financial Business District (LFBD), giving it full ownership of the asset, GIC announced.

GIC also formed a joint venture with Australian property group Charter Hall to purchase a 15-storey grade A office building in Parramatta CBD, in Sydney’s west.

Financial details were not disclosed, however local media reported the Sydney asset was acquired for more than A$400m.

Sitting on major thoroughfare Lize Rd, the Beijing property is the tallest building in the district and is directly connected to public transport.

GIC noted that upcoming infrastructure developments in LFBD would boost the area’s accessibility and attractiveness to potential tenants.

Jessie Street Centre

In Sydney, the 53,900 sq.m. Jesse Street Centre is almost fully let, with tenants including Australian Taxation Office, AMP Services Limited and various NSW Government Service tenancies.

“Parramatta is expected to benefit from Sydney’s forecast population growth and planned infrastructure enhancements such as a new metro line to the Sydney CBD and a light rail link,” said Lee Kok Sun, CIO at GIC Real Estate.

The property is set to benefit from major developments and infrastructure projects within the precinct, including Parramatta Square and the recent completion of stage 1 of WestConnex Motorway.

The area will also benefit from the Parramatta Light Rail project, which is scheduled for completion in 2023,  and the recently announced Sydney Metro West rapid rail to the Sydney CBD.

“The ongoing transformation of Parramatta will see it as a genuine second CBD and is likely to surpass North Sydney as Sydney’s largest metropolitan CBD market,” added Charter Hall fund manager Trent James.

Headquartered in Singapore, GIC has more than US$100bn in assets under management