A 75% interest in the yet to be completed York and George development in the Sydney CBD has been sold for approximately $200 million.
The vendor and remaining 25% stakeholder is Terra Australis Property Fund, an unlisted private equity fund managed by Fife Capital Management. Fife is an independent asset manager which invests on behalf of institutions, retirement funds and private sources. The Fife family’s background in real estate began in 1963 when they opened their first integrated retail and office development; they established Fife Capital in 2006.
The 7,400 sqm project at 383 George Street will be a mixed-use development comprising two levels of basement car parking, a six level retail and commercial podium and a 32 level residential tower above containing 199 apartments. The apartment tower is not included in the sale. Also included in the sale are heritage facade rectification works to Carlton House at 38-44 York Street and Spiden House at 46-48 York Street. Construction costs at time of development application were estimated at $109 million.
The purchaser, Prudential Financial, Inc, is an American Fortune Global 500 and Fortune 500 company which focuses on life insurance, annuities, retirement related services, mutual funds and real estate. PGIM Real Estate, Prudential’s real estate arm, completed more than $14 billion in transactions worldwide in 2017 and currently has gross assets under management of $69 billion.
Fife Capital bought the site in four parcels in 2008/2009 for a total of $72.35 million.