Sydney is now home to the single biggest office deal in Australia’s history, as investment into the city’s office sector showing no signs of slowing down.
The record was broken with a joint venture acquisition of a 49.9 percent interest in Brookfield’s AU$1.9 billion Wynyard Place development; AMP Capital’s Wholesale Office Fund (AWOF) took a 25 percent interest while UniSuper, a separate account client of AMP Capital, committed to 24.9 percent of the completed development.
The focal asset of Wynyard Place will be a 67,000 square-meter, 27-level premium grade commercial tower, which is already 45 percent pre-committed by National Australia Bank. The development is also set to include around 3,500 square metres of high-end retail and a major upgrade to Wynyard Station’s George Street entrance.
The deal was brokered by JLL’s Rob Sewell, Paul Noonan, Simon Rooney and Simon Storry.
Strong infrastructure investment coupled with a robust economy and strengthening leasing market have seen more and more investors looking to Sydney.
The Wynyard Place deal is the latest show of commitment from domestic buyers. One of the country’s largest Real Estate Investment Trusts, Dexus, recently announced an AU$1 billion commitment to the Sydney market through the acquisition of two flagship assets – a 50 percent interest in renowned CBD office and retail complex, the MLC Centre, for AU$722.5 million, and the purchase of 100 Harris Street, Pyrmont for AU$327.5 million.
Australia remains as a safe investment destination for many domestic and international buyers, and it’s not just Sydney that is attracting office investors, with JLL’s Australian Office Investment Review & Outlook showing a positive outlook for the country’s major office markets.
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