Stockland keeps it in the family with North Sydney buy
Stockland has gone back to its roots with the purchase of a North Sydney office tower adjacent to one it already owns from the son of the company’s founder Ervin Graf.
The developer bought the seven-level tower at 118 Walker Street from Michael Graf’s Menora Nominees, and the neighbouring 122 Walker Street in a separate transaction.
Stockland paid $121 million for the pair but did not disclose the individual prices.
The buildings adjoin Stockland’s existing building at 110 Walker Street and give it a 2300sq m redevelopment site close to the future Victoria Cross metro station. The three fully let buildings with a combined net lettable area of 10,000sq m could make for a site six times as large, Stockland’s commercial property head Louise Mason said.
“Subject to approvals, the amalgamated Walker Street site will have the potential to accommodate up to 60,000 square metres of prime office space in the future,” Ms Mason said.
“We look forward to working with North Sydney Council and local stakeholders to progress our proposed plans for this site.”
The acquisition is a sizeable boost to Stockland’s modest office portfolio that at the end of June comprised just five assets worth $800 million, with a combined net lettable area of 111,407sq m.
The deal is part of a push to expand its logistics/warehouse and office portfolio. In the year to June the company boosted the weighting of that business from 4 per cent to 23 per cent of its total portfolio and aims to raise it to between 25 per cent and 35 per cent over the next five years.
Mr Graf’s company paid $15.05 million for 118 Walker Street in December 2000. He could not be contacted for comment on Sunday.
Records show the sellers of 122 Walker Street were Peter Read and Matthew Read. Their vehicle Talish Pty Ltd purchased the building for $7.8 million in November 2008.
In 2014, at the induction of his late father into the Property Council of Australia’s Australian Property Hall of Fame, Mr Graf said his father, who died in 2002, was known as “a fast talking and quick thinking” person.
“He liked working at a very detailed level, but he always had an amazing ability to still see the big picture – and what that might mean,” he said.
“He had an exceptional mind that allowed him to quickly grasp and understand the many changes in business, planning requirements and finance.
“For example, from the moment a new tax or property law was announced, he was often asking complex questions that even those specialised in the area could not answer, and many would later come to seek his views on what might be the better response.”
