This article is from the Australian Property Journal archive
THE AMP Capital Wholesale Office Fund (AWOF) and UniSuper have joined forces to acquire a 49.9% stake in Brookfield’s $1.7 billion-$1.9 billion Wynyard Place development in Sydney.
AWOF and UniSuper will acquire a 25% and 24.9% interest in the completed development, respectively. The yield is believed to be 4.75%.
AMP Capital global head of real estate Carmel Hourigan said Wynyard Place will be a landmark for Sydney.
“I’m pleased we have been able to secure a stake in this premiere Sydney development.
“This is a landmark deal for AMP Capital and it is testament to our ability to find and deliver significant investments for our clients that meet their objectives,” Hourigan said.
Head of real estate funds management Chris Judd said the acquisition reflects AMP’s confidence in the Sydney office market.
Brookfield Property Partners won an unsolicited tender process in 2016 to redevelop the prized asset, after two years of negotiations.
Due for completion in 2020, Wynyard Place’s centrepiece is a 67,000 sqm, 27-level premium grade commercial tower, which is 45% pre-committed by National Australia Bank.
Judd said whilst NAB is the only to have formally pre-committed to the development, there is significant interest from other parties as Sydney’s office market continues to witness tenant displacement as a result of the Sydney Metro project and residential conversions.
“The Sydney office market is seeing diminishing stock and increasing demand. So the fundamentals are good and will continue to improve,” Judd said.
AWOF manager Nicholas McGrath said the Wynyard Place development will complement AWOF’s $5 billion portfolio of prime commercial properties.
“We are delighted to be investing in this outstanding development, which is underpinned by a long lease to NAB. NAB has been an important customer of ours at 255 George Street, Sydney, for more than 30 years and is also the sole occupier of AWOF’s 700 Bourke Street in Melbourne. We look forward to continuing our ongoing relationship with NAB at Wynyard Place.
“This acquisition is aligned with AWOF’s strategy of acquiring or developing next-generation, well-let prime office assets with best-in-class sustainability credentials. The Wynyard Place development complements perfectly AWOF’s $5 billion portfolio of prime commercial properties,” he added.
The development will also include restoration of the historic Shell House and 285 George Street. In addition, 3,500 sqm of high-end retail will be created together with a revitalised Wynyard Lane and a major upgrade to Wynyard Station’s George Street entrance connecting to a grand transit hall and public concourse. The development has achieved a 6-star Green Star design v3 rating and is targeting a 6-star Green Star as built v3 rating, 5.5-star NABERs energy rating, 4-star NABERS water rating and a 4-star NABERS Indoor Environment rating.
Australian Property Journal
