Mervac List, Blackstone 60 Margaret Street, Sydney Approx. $900 million.

Office and retail assets have proven resilient in a volatile economic environment, as investors have invested up to $49 billion in high-quality, higher-return bricks and mortars.

Mirvac and Blackstone are testing demand by listing their office tower at 60 Margaret Street in Sydney and the accompanying retail complex known as MetCentre, with a price tag of about $900 million.

Vanessa Ryder, head of research at Ray White, said the recorded sales volume is higher than it was a year ago when the pandemic was in full force. Foreign investors remained interested in domestic assets as Australia is still seen as a safe haven for investment due to its economic and political stability.

Mirvac and Blackstone are selling their joint stock at 60 Margaret Street, Sydneyattributed to him:Nick Walker

“Capital flows at an important tipping point, big buyer of 2021, REITs (Real Estate Investment Trusts) are dropping rapidly this year and are selling more than they are buying,” Ryder said in her investment update.

Ray White’s data shows that as of the end of August, $48.6 billion has been invested in commercial real estate with the state of New South Wales the preferred location, accounting for 43.3 per cent of sales, a 5 per cent increase over last year’s results.

Similarly, Victoria increased its holdings in the 2021 results, now at 27.8 per cent, while markets such as Queensland and Western Australia, which were attractive last year due to their strong population gains, economic growth and future potential, have now slowed.

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In Melbourne, Charter Hall led the charge by buying half a stake in the Southern Cross Towers complex, through its unlisted office fund, for $1.02 billion with a return of 4.35 percent. Also, 50 percent of 55 Collins Street’s $800 million stake was sold to Singapore’s GIC sovereign fund.

“Looking at asset classes, confidence in office assets has returned while industrial sales are now down after an outstanding performance in 2021, while retail, hotel and medical/elder care have seen a pickup in activity this year as well,” said Ryder.

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Originally published at Melbourne News Vine