Sydney’s tallest tower to test battered office market

Campbell Kwan and Nick Lenaghan

Aug 7, 2024 – 4.25pm

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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.

A sale at that price would value Sydney’s tallest tower at $2 billion, roughly a 10 per cent discount to what it was worth two years ago. The Japanese fund may even be willing to trade out on offers below that pricing, according to market sources.

correction —

Brookfield’s stake in 388 George Street is up for sale. The original report said it owned 385 George St.

Campbell Kwan covers retail and consumer goods for The Australian Financial Review, based in the Sydney newsroom.

Nick Lenaghan edits the property section, which covers all aspects, from residential real estate and housing and construction to commercial property – office, retail, industrial – and major ASX-listed developers and real estate investment trusts.