Roxy-Pacific Holdings and Tong Eng Group have sold off their freehold commercial property in Sydney to ICPF Nominees, an Australian private company, for A$153 million ($154.28 million).

The 14-storey building, on 117 Clarence Street, was acquired in February 2016 by the two companies for A$81 million through a 50:50 joint venture.

The sale follows that of another freehold office building in Sydney, which Roxy-Pacific sold off in 2017 for A$158 million. Roxy-Pacific purchased the 28-storey office building at 59 Goulburn Street, in Sydney’s south central business district, for A$90.2 million, above its valuation of A$86 million, back in July 2014.

“Both prime commercial buildings in Sydney had contributed healthy recurring income before they were divested at a good price. We hope to replicate this model and extend our investment track record in the near future, recycling the capital from the sale of 117 Clarence Street into other yield-accretive investments to enhance shareholder value,” says Teo Hong Lim, executive chairman and CEO of Roxy-Pacific.

Meanwhile, Tong Eng Group intends to grow its presence and investment portfolio in Australia, says Teo Tong Lim, group managing director of the company.

Tong Eng Group’s first foray into Australia was the purchase of the Harley Davidson building at 111-125 A'Beckett Street, Melbourne, in April 2015 for A$38 million. It was subsequently sold for A$61 million in July 2017.