Frasers Property (formerly: Frasers Cpt (FCL))

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Bids flow for Sydney office tower

GREG BROWN THE AUSTRALIAN JUNE 26, 2014 12:00AM

THE owners of the 34-level Sydney office tower at 201 Elizabeth Street, Dexus Property Group and the Perron Group, have taken steps to open up one of the city’s biggest residential conversion opportunities.

CBRE has been appointed to present the tower to developers that have already shown interest in buying the building, sources say. It is thought that bidders so far have included Chinese developers Poly Group and Greenland, while Singaporean groups Far East Organisation and Frasers Property Australia have also made approaches. The unsolicited bids have ranged from $320 million to $340m.

However, the joint owners have recently struck leases on five-year terms that do not have a development clause.

Sources said the buyer could hold the office building for investment for the medium term.

Dexus confirmed it had fielded unsolicited offers for the tower and it was working with Perron to evaluate the proposals.

CBRE declined to comment.