Chinese developer and investor Zone Q has announced the acquisition of 55 Clarence Street, Sydney NSW for $255M. The B-grade office building is being purchased from investment manager AEW Capital Management on a 3.6% passing yield. Built in 1973, the 14,888sqm building has been refurbished several times, Zone Q expects to hold the property and further rework the tower for additional capital upside. The property was previously purchased by AEW in 2016 for $169M and currently has a WALE of 2.3 years, with key tenants including Allianz Australia, Wilson Parking and AAPT.
Zone Q looks set to increase its presence in commercial properties in Australia with recent purchases in 2018, in Perth and Melbourne totalling $189M: 55 St Georges Terrace, Perth ($45M), 182 St George Terrace, Perth ($25M) and the Victorian Police Centre, 637 Flinders St, Melbourne ($122M). Zone Q entered the Australian market in 2013 and has three apartment projects in Perth as well as the Aqualuna apartments in Milsons Point, Sydney NSW.