NPS buys Australian building for $900 mn to diversify investment
Korea's pension fund acquired a 100 percent stake in Melbourne Quarter Tower from Lendlease, an Australian property management firm
By Jul 02, 2021 (Gmt+09:00)
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South Korea’s national pension fund bought an office building in Australia for almost $900 million, which would be its largest investment in the country so far, in a move to diversify investment destinations and secure profits from projects that are not completed yet.
The National Pension Service (NPS) acquired a 100 percent stake in Melbourne Quarter Tower from Lendlease, an Australian property management firm, according to the pension fund on Friday. The NPS was understood to have paid A$1.2 billion ($894.5 million).
The 34-story building is to be completed in 2024 and Medibank, one of Australia’s largest private health insurers, will be the anchor tenant of the tower, according to Lendlease, which will manage the asset.
“Melbourne Quarter Tower is the culmination of NPS’s endeavor in executing its build-to-core investment strategy to acquire premium quality commercial assets with high sustainability features,” said Scott Kim, Head of Real Estate Investment Division of the NPS, in a statement released by Lendlease.
The NPS’s strategy is to improve soundness of portfolio by adding sustainable and superior core assets, another NPS official said.
The NPS started investing in Australia’s property markets in 2010, buying a 44-story office building, Aurora Place, for A$685 million. The fund also invested millions of dollars in other real estate such as EastLink, a tolled section of the freeway in Melbourne.
Write to Jung-hwan Hwang at jung@hankyung.com
Jongwoo Cheon edited this article.
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