International investors are flooding back to the country for its stable economy and high-quality assets at the same time as the capital cities are coming back to life post the global pandemic.

In one of the largest deals that is attracting a range of buyers is the $2 billion-plus sale of the Southern Cross Towers in Melbourne. Private equity managers Brookfield and Blackstone are seeking buyers for the towers in Melbourne which will be a landmark deal in the post-COVID-19 impacted office sector.

Buyers said to be running the ruler over the complex is the home-grown Charter Hall and Lendlease, while foreign-based players include the Hong Kong-based Link REIT and the ESR-managed ARA Asset Management among others.

Under the complicated ownership structure, the proposed covers the Southern Cross East Tower and Southern Cross West Towers. Blackstone held the asset as part of its core-plus strategy and Brookfield is still deciding what to do with its half share.

The potential list of international buyers comes as foreign buyers continue to be active in both buying and selling commercial assets with early signs that this trend is set to continue despite the election and its outcome.

Ray White head of research Vanessa Rader said the recent release of the FIRB Annual Report for 2020-21 has shown a 95.91 per cent increase over the year in applications to invest in Australian real estate.

She said the 862 applications, which represents $82 billion in commercial property, is an opposite trend to what we have seen in the residential market, with $10.4 billion approved down from $17.1 billion the previous year.

“Commercial investment continues to be heavily weighted towards Sydney and Melbourne regions with strong volumes across all sectors notably the office market,” Rader said.

“The current uncertainty, particularly in CBD office markets, surrounding occupancy and rents is not a deterrent for these buyers who consider the yields on offer still competitive compared to other international markets.”