Singapore’s Metro, Sim Lian Buy Sydney Tower From Hong Kong Toy King for $132M

The Australia joint venture of Singapore builders Metro Holdings and Sim Lian Group has acquired a downtown Sydney office tower from Early Light International, the Hong Kong firm controlled by toy tycoon Francis Choi, for A$196.4 million ($132 million).

Metro holds a 30 percent stake in the JV and is committing A$30.8 million in capital to the investment in 1 Castlereagh Street, the SGX-listed company said Wednesday in a release. The 27-storey building is the fifth office asset and 18th property overall in the venture’s portfolio, in which private developer Sim Lian owns the remaining 70 percent interest.

“This is a rare opportunity to acquire a freehold prime office property within the highly sought-after core precinct of Sydney’s CBD which continues to benefit from flight-to-location and flight-to-quality trends,” said Metro CEO and executive director Yip Hoong Mun. “The acquisition enhances our portfolio in Australia and deepens our strategic partnership with Sim Lian.”

Choi, who earned the moniker “King of Toys” after Early Light became the world’s largest toy manufacturer, has been marketing some of his real estate trophies as Hong Kong’s downturn erodes asset values. Mingtiandi reported in July that the billionaire was seeking a buyer for 20 Bridge Street, the central Sydney home of the Australian Securities Exchange, at A$300 million.

Tycoon Downsizes

Spanning 12,418 square metres (133,666 square feet) of net lettable area, 1 Castlereagh Street is 85 percent occupied with a weighted average lease expiry of three years. The property was refurbished in 2021 and awarded a 4-star NABERS rating for sustainability.

The A$196.4 million sale, which was brokered by Knight Frank, translates to A$15,816 ($10,627) per square metre of NLA. Choi’s Early Light had paid A$220 million to acquire the tower from US private equity giant Blackstone in 2017, following its purchase of 20 Bridge Street from a Malaysian pension fund that same year for A$335 million.

In 2019, Early Light acquired the remaining 50 percent interest in another Sydney office asset, Northpoint Tower, from Cromwell Property Group after having bought the initial half-stake from South Africa’s Redefine Properties in 2018.

Guangdong-born Choi, who ranks tenth on the latest Forbes list of Hong Kong’s richest people with a net worth of $8.2 billion, founded Early Light in 1972. The privately held firm established its property unit in 1997 and has since diversified into businesses including luxury watch retailing, automotive services and kindergartens.

Office Portfolio Grows

The acquisition of 1 Castlereagh Street increases Sim Lian-Metro’s Australia portfolio to 176,227 square metres of NLA across five office buildings and 13 retail centres with a total appraised value of more than A$1.37 billion ($920 million).

The JV’s most recent retail pickup was Shepparton Marketplace, a neighbourhood mall in Victoria state purchased in 2022 for A$92 million (then $59.7 million).

The existing portfolio of 17 properties had an occupancy rate of 94.1 percent and a WALE of 5.6 years as of March.