Leighton Holdings (LEI) has sold a North Sydney development to Suntec Real Estate Investment Trust for $413.19 million.
In a statement to the Australian Securities Exchange, Leighton announced the sale of 177 Pacific Highway, North Sydney and said it represented an initial yield of 6.89%.
Leighton chief executive officer Hamish Tyrwhitt said the project was keenly sought by buyers domestically and internationally, reflecting the value of its relationships with key Asian partners.
"The sale to Suntec REIT, Singapore’s second largest listed SREIT by asset under management, is testament to the building’s design and it is in line with our strategy to align with key investors and efficiently use our capital through pre-selling developments," Mr Tyrwhitt said.
"The project will be developed by Leighton Properties and built by Leighton Contractors – an example of how the collaboration of Leighton Group companies generates value for clients, strategic partners and shareholders."