OUE REIT agrees to buy Ping An's 50pc stake in Salesforce Tower

OUE REIT has agreed to buy Ping An Real Estate’s 50 per cent stake in Salesforce Tower at 180 George Street in the Sydney CBD, according to a report first published 14 October 2026 and updated two days later. The Singapore-listed trust’s holding in the 55-storey office tower will rise to 69.9 per cent once the sale settles, up from the 19.9 per cent it already owns. Settlement has not occurred and no date for it has been disclosed.

Why it matters

The move would hand OUE REIT effective control of one of Sydney’s newest trophy office towers, part of the Sydney Place precinct, less than seven months after it first bought into the asset. Ping An Real Estate, the Chinese investor selling down, holds the largest single stake. A sale of its full position would concentrate ownership of the building in one Singapore-listed landlord.

The reported price implies a $1.73 billion valuation for the tower on a 5.75 per cent capitalisation rate, a yield that points to continued investor appetite for prime, fully let CBD stock even as secondary office assets struggle to transact. Salesforce Tower was 99.2 per cent occupied as at December 2025, according to OUE REIT, anchored by its naming tenant, with JLL, Wellington Management and The Executive Centre among the other occupiers across 61,914 square metres of A-grade net lettable area.

The numbers

The 50 per cent stake is reported at a price of about $864 million. That is separate from, and more than double, the $357.2 million OUE REIT paid for its first 19.9 per cent slice. That earlier tranche was bought from Mitsubishi Estate’s Australian subsidiary, MEA Sub TC Pty Ltd, not from Ping An, under a sale agreement OUE REIT announced to the Singapore Exchange on 24 February 2026 and completed on 16 March 2026.

No SGX or ASX filing has appeared for the new 50 per cent tranche. The report citing the deal, from Real Estate Source, is the only record currently available, and this masthead has not found a corresponding disclosure from OUE REIT or Ping An. That absence does not mean the deal is not real, but it does mean the terms, including the $864 million price and the 5.75 per cent cap rate, remain unconfirmed by either party on the public record.

What’s next

If the sale proceeds as reported, ownership of Salesforce Tower would settle into three blocks: OUE REIT at 69.9 per cent, Lendlease’s Australian Prime Property Fund Commercial at 20 per cent, and the remaining roughly 10 per cent split between Odakyu Electric Railway and MEC Global Partners Asia. Lendlease sold its stake in 2022 while the tower was still under construction, when the project was assumed to be worth $2.2 billion.

The deal lands in the same week as fresh residential supply in the pipeline, including Level 33’s four-tower, 1,263-home Kellyville scheme. For other owners of partly held CBD towers, a deal of this size at this yield is a data point worth watching rather than a signal to act on. A single reported transaction, even one this large, is not a market. Operators with co-ownership stakes in similar trophy assets should wait for an SGX filing, a settlement notice, or a second source before treating the implied $1.73 billion valuation as a comparable for their own asset. Until OUE REIT or Ping An confirms the transaction through a regulatory disclosure, it remains an agreed but unsettled deal.