The asset is strategically located on Harbour Street in Sydney, with the entire office component leased to Commonwealth Bank of Australia with WALE for more than 12 years. Completed in 2012, Darling Quarter comprises total net lettable area of around 61,000 square meters across two towers of campus style premium-grade office space alongside retail shops on the ground level. The asset has a 99.7% committed occupancy rate and was awarded 6-Star Green Star Design and As-Built certification and is currently operating with 6-Star NABERS Energy and 6-Star Water ratings.

This transaction is in line with AREAP Core I fund’s strategy to build a diversified portfolio of high-quality assets across Asia-Pacific and comes on the back of the acquisition of a 50% stake in OUE Bayfront, Singapore last year. The AREAP Core I fund, managed by Allianz Real Estate, is a USD 2.3 billion investment platform in the form of a Singapore domiciled, close-end fund where NPS and Allianz are 50:50 investors.

“The pandemic has re-emphasized the importance of micro location, city density, asset quality and ESG when investing in an office asset,” said Danny Phuan, Asia-Pacific Head of Acquisitions for Allianz Real Estate, “Sydney is one of the most liveable cities in the world and the long-term outlook for the Sydney office market remains favourable, supported by robust economic fundamentals, an attractive labour market and strong infrastructure investments”.

“On behalf of NPS and Allianz, we are very happy to be investing in this landmark office building in Sydney, providing long-term value and stable cash flow. AREAP Core I is now 82% committed and this asset provides attractive diversification to the portfolio,” said Rushabh Desai, Asia Pacific CEO for Allianz Real Estate. "We are also excited to establish a partnership with a best-in-class company like Lendlease."

Allianz Real Estate’s exposure in Asia Pacific amounted to USD 8.8 billion as at the end of September 2021, of which Australia accounts for 20%. The Asia-Pacific business is headquartered in Singapore with local offices in Tokyo and Shanghai.

Allianz Real Estate is a PIMCO Company, comprising Allianz Real Estate GmbH and Allianz Real Estate of America and their subsidiaries and affiliates.  It is one of the world’s largest real estate investment managers, developing and executing tailored portfolio and investment strategies globally on behalf of a range of global liability driven investors, creating long-term value for clients through direct as well as indirect investments and real estate financing. The operational management of investments and assets is performed out of 18 offices in key gateway cities across 4 regions (West Europe, North & Central Europe, USA and Asia Pacific). For more information, please visit:  www.allianz-realestate.com. PIMCO is one of the world’s premier fixed income investment managers. With its launch in 1971 in Newport Beach, California, PIMCO introduced investors to a total return approach to fixed income investing. In the nearly 50 years since, the firm continued to bring innovation and expertise to our partnership with clients seeking the best investment solutions. PIMCO has offices around the world and 3,000+ professionals committed to delivering superior investment returns, solutions and service to its clients. PIMCO is owned by Allianz SE, a leading global diversified financial services provider.

Source: Allianz Real Estate, data as at 30th September 2021. 

These assessments are, as always, subject to the disclaimer provided below.