Brookfield to buy KPMG Tower

Canadian firm will enforce its pre-emptive right to take full control of the $220m KPMG Tower in Sydney.

Canadian giant Brookfield will enforce its pre-emptive right to take full control of the $220 million KPMG Tower at King Street Wharf on the edge of the Sydney central business district.

The move will leave the GPT Wholesale Office Fund, which had been poised to pick up a half stake in the A-grade office tower at 10 Shelley Street, with a smaller haul of properties from a peace deal struck with Dexus Property Group over the takeover of the Commonwealth Property Office Fund.

Dexus and partner Canada Pension Plan Investment Board won control of CPA partly by agreeing to sell the half-stake in the Shelley Street building, and Melbourne’s 655 Collins Street and 750 Collins Street, as well as a half-stake in Freshwater Place, to the GPT-run fund for a total of $679m. GPT’s chance to buy half of $400m Melbourne tower Freshwater Place also may be under threat if Australand Property Group enforces its pre-emptive rights to buy that asset.

Australand is rumoured to have attracted a capital partner to back this move but GPT is understood to reject the potential introduction of a new group under the terms of the co-owners’ agreement.

Brookfield declined to comment on whether it would exercise its pre-emptive right to take full ownership of the 28,000sq m KPMG Tower.

GPT’s shopping centre fund bought a half-stake in Melbourne’s Northland Shopping Centre from the CPPIB for $496m as part of the takeover peace deal.

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