AMP Capital has exchanged contracts on the Tabcorp headquarters at 495 Harris Street Ultimo with a Chinese developer for $63 million.

The building is a commercial office property with approximately 10,000 square metres of net lettable area over four floors, with basement parking and two ground floor retail suites. The current site zoning is mixed use and provides for a variety of uses including commercial and residential premises. AMP Capital Wholesale Office Fund Manager Nick McGrath said this was an excellent outcome for the Fund’s investors.

“We are very pleased with the sale of 495 Harris Street, Ultimo, which delivers upon the Fund’s strategy to divest smaller, non-core assets.

“This transaction allows us to capitalise on the current high demand for buildings with mixed use zoning and redeploy the proceeds into well-located, higher quality core office assets with strong leasing covenants,” Mr McGrath said.

The AMP Capital Wholesale Office Fund is an open-ended unlisted trust investing in high-quality office buildings in Australia and New Zealand. The Fund had assets of $2.9 billion as at 31 December 2013.