SMFL-Backed Aravest Buys Half-Stake in Brisbane Office Tower for Reported $131M

Aravest, a Singapore-based unit of Sumitomo Mitsui Finance and Leasing Co, has acquired a 50 percent interest in a 40-storey office tower in central Brisbane in a deal said to value the stake at more than A$200 million ($131 million).

The Japanese-backed fund manager picked up a half-stake in Central Plaza 1 at 345 Queen Street in the heart of Brisbane’s Golden Triangle office precinct, according to a LinkedIn post by the company late last week. The seller, a core fund managed by Australia’s Industry Superannuation Property Trust, retains a 50 percent interest in the Grade A tower under a joint venture with Aravest, according to a fact sheet at the Melbourne-based group’s website.

No financial details were disclosed by ISPT or Aravest, the former ARA Asset Management private funds division carved out from ESR last year. The transaction value in excess of A$200 million for the stake was reported last month by The Australian newspaper as the deal for the 40,446 square metre (435,357 square foot) tower neared completion.

“The 40-floor prime office building is afforded a premier CBD location with exceptional connectivity and access to major transport links, retail, and financial precincts, positioning it to outperform as Brisbane continues to grow,” Aravest said. “This acquisition underscores our confidence in the city’s long-term growth, supported by strong fundamentals, robust infrastructure investment, and sustained tenant demand.”

Offshore Interest

ISPT acquired the 1988-built Central Plaza 1 from the Queensland Investment Corporation in January 2008 for A$385 million and carried out a redevelopment of the tower in 2018.

Located at the corner of Queen Street and Creek Street opposite the University of Queensland’s Brisbane City campus, Central Plaza 1 is valued at close to A$400 million at the reported price, translating to A$9,890 ($6,473) per square metre of lettable area.

After a strong finish to 2024, which saw a full-year total of A$1.1 billion in sales of central Brisbane office properties valued at A$10 million or more, momentum has slowed in the market since early this year, according to the latest report from Knight Frank.

“Offshore institutions and core buyers continue to view the market favourably,” the consultancy said. “This has been supported by the strength of the tenant market, which has elevated Brisbane’s position above Melbourne, though Sydney remains the primary target, particularly for core buyers.”

SMFL Activates Singapore Business

Aravest, acquired last year by Sumitomo Mitsui Finance and Leasing Co and its Kenedix unit in a $270 million deal, manages a $9.3 billion portfolio of real assets across Asia Pacific from offices in Singapore, Melbourne and Seoul.

SMFL bought out ESR’s remaining 30 percent stake in Kenedix in a deal announced just over one month ago, giving the Japanese investment firm full ownership of the Singapore-based fund manager.

Aravest said two weeks ago that it is in the final stages of divesting Seoul Square — a landmark office block acquired by ARA for KRW 1 trillion in 2019 — to Korea Investment Real Asset Management for a reported KRW 1.3 trillion ($932 million).

In a separate deal announced on Monday, Aravest was revealed to have received backing from Singapore-listed developer and investor Wee Hur Holding for the redevelopment of the former Miramar Hotel in Singapore, which will be rebranded as a DoubleTree by Hilton marque. 

The 344-key riverfront hotel will undergo a complete upgrade and reopen in 2026 as the DoubleTree by Hilton Singapore Robertson Quay, the companies said Monday in a release. Aravest led the purchase of the 16-storey hotel from a family investor group for S$160 million ($123 million), according to reporting by the Business Times.