North Sydney home of US consulate changes hands
Singaporean fund manager Sun Venture has swooped on a $150 million North Sydney tower home to the US Consulate General and WeWork, the latest shot of investment into the busy office precinct.
Struck on a yield in the mid 5 per cent range, the acquisition of 50 Miller Street, when completed, will add an Australian asset of 10,427 sq m with blue-chip tenants to the Singaporean fund manager’s portfolio which has hitherto focused on the London and Singaporean markets.
The transaction comes amid a wave of investment and development into Sydney’s second CBD, a boom that could deliver $11 billion of real estate when complete. Major developers such as Lendlease, Billbergia, Third.i and Stockland are pursuing projects in the neighbourhood, with the development of the Victoria Cross Metro Station a catalyst for growth in the area.
The Miller Street office block was put on the market by Sumner Capital in July after an extensive upgrade and with a plan to recycle the capital into fresh opportunities.
CBRE’s James Parry and Kenny Duncanson, together with JLL’s James Barber, Luke Billiau and Simon Storry brokered the property.
Meanwhile, Sydney’s CBD is attracting a steady stream of investment, with the latest transactions involving neighbouring towers at 32 and 36 Carrington Street, which have been sold by Brookfield to separate parties for $109 million in total.
Brookfield had restored the towers in tandem with the $2 billion Brookfield Place Sydney development, before putting them on the market earlier this year.
The larger tower at 36 Carrington Street has sold for $70.5 million on an initial yield of around 3.75 per cent to Swiss pension fund investor AFIAA, which has previously invested in Melbourne and Brisbane.
The smaller of the two towers, at 32 Carrington Street, has been picked up by local fund manager April Group on behalf of several private family offices for $38.5 million. That price represents a passing yield of 4.31 per cent and a fully leased yield of 4.92 per cent.
With 2,123 sq m of space over 11 levels, the boutique block stands directly above Wynyard Railway Station.
“Our assets are about curating an experience that is akin to luxury residential spaces termed ‘office apartments’,” said Alanna Ong, April’s asset manager.
CBRE’s Harry George, Danny Shi and Hugh Thompson, together with CI’s Mike Stokes, John Bowie Wilson and Shirley Fan, were appointed to broker Brookfield buildings.
