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06 September 2021

M&G Invests AU$577.3 million for award winning office building in Sydney's central business district

2021
  • Acquired 49.9% of EY Centre at 200 George Street in Circular Quay, Sydney
  • Prime landmark building designed with cutting edge and innovative smart technology
  • Supported by a green loan from OCBC Bank, the acquisition was made on behalf of M&G’s core Asia Pacific property portfolio

Singapore, 6 September 2021 – M&G Real Estate has acquired 49.9% interest in a prime landmark office building in Sydney’s central business and cultural precinct. The acquisition, priced at AU$577.3 million (US$421million1), has been agreed on behalf of M&G’s core Asia Pacific property portfolio managed by Richard van den Berg. The acquisition was supported with a AU$259.8 million (US$189.6 million1) green loan from OCBC Bank in Sydney, the sole lender and green advisor for the transaction.

Developed and co-owned by Australian property group, Mirvac, and located in the heart of Sydney’s central business district, 200 George Street is a multi- award winning, landmark building built in 2016. Designed with cutting-edge technology and innovation, it is one of Australia’s most sustainable buildings and was awarded a 5.5-Star NABERS Energy rating, a 5.5-Star NABERS Water rating, Tenancy Gold Well, and a 6-Star Green Star rating. It is equipped with energy efficient technology including LED lights and an automatic timber blind system which adjusts in response to exterior conditions. Smart building management technology are installed to monitor and adjust the interior environment such as air quality, power, and water usage. To support sustainable commuting, the building has allocated 300 bicycle spaces, 257 lockers and 28 showers.

Also known as ‘EY Centre’, 200 George Street has a total floor space of 38,983 sqm comprising 35 levels of offices and two-levels for retail. The building receives natural light from three elevations and has a column free floorplate size of 1,100-1,400 sqm. It enjoys excellent access to shopping, cultural buildings, and public transportation. The building is fully occupied with long-term tenancies at a 4.3% yield.

Richard van den Berg adds, “Despite the pandemic, Australia’s key business markets have seen prime-grade rental stabilise over the quarter. Over the medium term, an expected return of occupier demand, coupled with a fairly muted incoming supply, should bolster occupancy rate recovery and support rental growth for most prime central business district markets. This acquisition, including the additional 25% increase in our stake in the office building at 400 George Street, is in line with our strategy to improve the quality of our office portfolio and support positive rental growth for our investors.”

“We are delighted to deepen our relationship with our Australian partner, Mirvac, whilst expanding our core portfolio in Australia. . This transaction is a testament to our partnership strength through which we were able to secure pre-emptive rights to acquire this stake.”

The green loan was prepared together with OCBC Bank in accordance with the Green Loan Principles issued in 2021 by the Asia-Pacific Loan Market Association, Loan Market Association and Loan Syndications and Trading Association. This is a further testament of the successful implementation of M&G real estate Responsible Property Investment and ESG principles into its Investment Management.

1 Exchange rate: 1 AUD = 0.729256 USD (as at 31 August 2021)

Enquiries

Sagarika Krishnan

FTI Consulting
Singapore

Michael Luk

FTI Consulting
Hong Kong

Notes to editors

M&G Investments is part of M&G plc, a savings and investment business which was formed in 2017 through the merger of Prudential plc’s UK and Europe savings and insurance operation and M&G, its wholly owned international investment manager. M&G plc listed as an independent company on the London Stock Exchange in October 2019 and has £370 billion of assets under management (as at 30 June 2021). M&G plc has over 5 million customers in the UK, Europe, the Americas and Asia, including individual savers and investors, life insurance policy holders and pension scheme members.

For nearly nine decades M&G Investments has been helping its customers to prosper by putting investments to work, which in turn creates jobs, homes and vital infrastructure in the real economy. Its investment solutions span equities, fixed income, multi asset, cash, private debt, infrastructure and real estate.

M&G recognises the importance of responsible investing and is a signatory to the United Nations Principles for Responsible Investment (UNPRI) and is a member of the Climate Bonds Initiative Partners Programme.

M&G plc has committed to achieve net zero carbon emissions on its total book of assets under management and administration by 2050 and committed to reduce operational carbon emissions as a corporate entity to net zero by 2030.

M&G’s real estate business, with £33.7 billion under management (as at 30 December 2020), is a leading financial solutions provider for global real estate investors, has a sector leading approach to responsible property management and is committed to continuously improving the sustainability performance of its funds.

For more information, please visit: https://global.mandg.com/

This information is intended for journalists and media professionals only. It should not be relied on by private investors or advisers.

This press release reflects the authors’ present opinions reflecting current market conditions; are subject to change without notice; and involve a number of assumptions which may not prove valid. It has been written for informational purposes only and should not be considered as investment advice or as a recommendation of any particular security, strategy or investment product. Past performance is not a guide to future performance.

Issued by M&G International Investments S.A. Registered Office: 16, Boulevard Royal, L-2449, Luxembourg.

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The information in this section of the site is intended for journalists and media professionals only.

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M&G Investments

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M&G plc, incorporated and registered in England and Wales. Registered office: 10 Fenchurch Avenue, London EC3M 5AG. Registered number 11444019. M&G plc is a holding company, some of whose subsidiaries are authorised and regulated, as applicable, by the Prudential Regulation Authority and the Financial Conduct Authority.

M&G plc is a company incorporated and with its principal place of business in England, and its affiliated companies constitute a leading savings and investments business. M&G plc is the direct parent company of The Prudential Assurance Company Limited. The Prudential Assurance Company Limited is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in England and Wales.

M&G Investments

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M&G plcの直接子会社であるM&G Investments(M&Gインベストメント)のウェブサイトにアクセスするには、
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M&G plc, incorporated and registered in England and Wales. Registered office: 10 Fenchurch Avenue, London EC3M 5AG. Registered number 11444019. M&G plc is a holding company, some of whose subsidiaries are authorised and regulated, as applicable, by the Prudential Regulation Authority and the Financial Conduct Authority.

M&G plc is a company incorporated and with its principal place of business in England, and its affiliated companies constitute a leading savings and investments business. M&G plc is the direct parent company of The Prudential Assurance Company Limited. The Prudential Assurance Company Limited is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in England and Wales.

M&G plc は、イングランド及びウェールズで設立・登録。本社登録地は10 Fenchurch Avenue, London EC3M 5AG。登録番号11444019。M&G plcは持ち株会社で、その子会社の一部はPRA(健全性監督機構)及びFCA(金融行為規制機構) に認可され、それらの規制対象となっています。

M&G plc は、イングランドを登録地、及び主たる事業領域とする会社で、その関連会社は有数の貯蓄・投資機関として基盤を確立しています。M&G plcは、Prudential Assurance Company Limited(プルデンシャル・アシュアランス・カンパニー・リミテッド)の直接親会社です。なお、Prudential Assurance Company Limitedは、アメリカ合衆国を主たる事業領域とするPrudential Financial, Inc.(プルデンシャル・ファイナンシャルInc.)またはイングランド及びウェールズで設立された国際グループ企業であるPrudential plc(プルデンシャル・ピーエルシー)とは一切関係がありません。

Prudential Portfolio Managers (South Africa) (Pty) Limited

You are about to enter the website of MandG Investments Southern Africa (Pty) Ltd a direct subsidiary of M&G plc. Click here to proceed.

M&G plc, incorporated and registered in England and Wales. Registered office: 10 Fenchurch Avenue, London EC3M 5AG. Registered number 11444019. M&G plc is a holding company, some of whose subsidiaries are authorised and regulated, as applicable, by the Prudential Regulation Authority and the Financial Conduct Authority.

M&G plc is a company incorporated and with its principal place of business in England, and its affiliated companies constitute a leading savings and investments business. M&G plc is the direct parent company of The Prudential Assurance Company Limited. The Prudential Assurance Company Limited is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in England and Wales.