Chinese-backed Aqualand in $78m deal for North Sydney tower

Chinese private trading company General Nice Group have sold an office block to interests associated with Aqualand.

146 Arthur Street, North Sydney has changed hands for $78m.

Offices: Interests associated with Chinese-backed Aqualand have snapped up an office block in North Sydney for $78 million, sold by Chinese private trading company General Nice Group.

The purchase of the office tower at 146 Arthur Street came after Aqualand bought the tower at 132 Arthur Street from fund manager Centennial Property Group for about $70m last year.

Aqualand also reached a conditional deal last month to buy the Fujitsu Centre above North Sydney train station from Phillip Wolanski’s Denwol Group for about $168m.

Title deeds show the owner of 146 Arthur Street as JW Argyle Nominee Pty Limited, a company directed by Zhaoming Chen, who, according to LinkedIn, works as the construction co-ordinator for Aqualand Projects. Aqualand could not be reached for comment.

The office block deal comes as offshore buyers eye the yields on offer across commercial and residential Australian real estate.

The office tower was built in 1989 and has been refurbished, with 10 levels of office space and a net lettable area of 8171sq m and views of Neutral Bay and Sydney Harbour. It offers three levels of basement car parking for 124 cars, or one space for every 66sq m of net lettable area.

CBRE’s Sharon Yang negotiated the deal, which she said highlighted the growing interest from foreign buyers in capital city commercial property investments.

“Offshore investors are targeting not only residential sites but are increasingly attracted to income-producing assets,” Ms Yang said.

“Sydney’s strong office market fundamentals and the outlook for rental growth in satellite locations, such as North Sydney, has been a key draw card. This has led to a significant tightening in North Sydney’s prime office yield, to 5.95 per cent as at December 2016, with offshore and domestic investors perceiving there to be good potential for further rental growth underpinned by falling vacancy rates and ongoing infrastructure improvements.”