Frasers Centrepoint yesterday said its Australian arm and a joint venture partner have agreed to sell a hotel and commercial space at their mega mixed-use urban renewal project in Sydney to an investment funds manager.
Frasers Property Australia and Sekisui House Australia, which are jointly developing the Central Park precinct in Sydney, have entered into option agreements with Impact Investment Group (IIG) on the sale of the hotel and commercial space at DUO, situated on the north-western corner of the project in the suburb of Chippendale.
The option agreements, worth just under A$190 million (S$199.4 million), includes the 300-room Four Points by Sheraton Sydney, Central Park hotel, which incorporates a bar and lounge with an outdoor terrace, a restaurant, nearly 550 square metres of function space, a fitness centre and parking facilities.
Also included in the deal is the commercial office component of 100 Broadway, which consists of a ground-floor retail space, over 5,400 sq m of commercial space, and a Greenwood Early Education Centre that can accommodate up to 90 children.
IIG is an Australian impact investment funds manager, with more than A$400 million in funds under management and a portfolio of assets along Australia's eastern seaboard, including Brisbane, Sydney and Melbourne.
Sekisui House is a Tokyo-listed residential construction company and one of the world's biggest. Frasers has partnered Sekisui House in Singapore on several condo projects.
The option agreements between Frasers Property Australia and Sekisui House Australia, and Impact Investment Group.
The sale comes just days after Frasers Centrepoint had announced an agreement to acquire an 86.56 per cent stake in Geneba Properties, an Amsterdam-based listed real estate investment company, for €315.9 million(S$474.8 million).
There is also a conditional agreement to launch an all-cash offer for the remaining 13.44 per cent.
Geneba has a portfolio consisting predominantly of logistics and light industrial properties focused on key industrial sectors in Germany and the Netherlands.
Frasers Centrepoint group chief executive officer Panote Sirivadhanabhakdi had noted: "Geneba ticks all the boxes in terms of what we are looking for in a logistics platform in Europe."