Grosvenor and Goldman Sachs Continue to Invest in Aussie Real Estate

By Alex Girda, Associate Editor

Sydney, Australia—Grosvenor Group and Goldman Sachs once again invested with an Australian property and investment asset management company this week. Propertylink recently acquired an office tower in Sydney, as well as an industrial portfolio for approximately $230 million.

The tower at 320 Pitt Street in Sydney was the most substantial bit of the acquisition, and Propertylink’s largest office transaction to date, costing the buyer around $152 million. The office property is fully leased for another five years to Telstra. According to deal information released by the investors, the purchase reflects an acquisition yield of 8.26 percent.

The industrial component of the transaction consists of eight different assets located throughout the country in markets such as Sydney, Brisbane, Melbourne and Perth. The assets have a WALE of 3.3 years, and their purchase reflects a passing yield of 10 percent. Propertylink acquired the industrial portfolio for approximately $73 million.

The Propertylink Australian Industrial Partnership was expanded by this deal and now totals 36 properties, and is valued at around $700 million. The vehicle was created in March 2014, with the help of Goldman Sachs and Grosvenor Group, when Propertylink was tasked with the management of PAIP.