Japanese investment giant Mitsubishi Estate Asia has put its 30 per cent stake in Sydney’s Salesforce Tower up for grabs, in a high-profile, $600 million test for the nation’s battered office market.
“This divestment bolsters MEA’s strategic expansion in Australia, where we continue to participate in more development projects across our real estate sectors of focus, including living, office and industrial,” Mitsubishi Estate’s Australia head Yuzo Nishiyama said. More tests are on the way for a market that may finally be nearing the bottom of the devaluation cycle,
The flow of opportunities in the office market come as the broader commercial property market shows signs of resurgence after two lacklustre years, according to MSCI’s regional research chief Benjamin Martin-Henry.Office deal sizes are getting bigger, and growth in investment yields – which typically moves in the opposite direction to values – is slowing, while the volume of deals is rising, according to the MSCI data.