This article is from the Australian Property Journal archive
AUSSIE tech unicorn Canva’s $123 million acquisition of a Surry Hills office building – just metres from its current headquarters – has been confirmed.
Founded in 2012 and launched the following year, the graphic design platform is now used to create social media graphics and presentations worldwide sensation, and is now worth an estimated $26 billion.
It has now spent $123.25 million to acquire the 8,568 sqm standalone office building at 8-24 Kippax Street, located moments from Central Station and its offices at 110 Kippax Street, and at the edge of the burgeoning Tech Central precinct where Atlassian is developing a $1 billion tower for its own HQ.
Knight Frank’s Jonathan Vaughan and Ben Schubert managed the sale, which they said presents the largest office investment transaction in Surry Hills to date, following the agency’s sale of 285a Crown Street in September for $116.2 million.
The agents said the expressions of interest campaign for 8-24 Kippax Street generated 14 first round bids totalling around $1.4 billion in active capital.
The sale represented a fully leased yield of 2.7% and capital value of $14,659 per sqm.
The NSW government is hoping Tech Central will become a major tech and innovation hub with 250,000 sqm of office space. Atlassian will be moving into a brand-new $1 billion, 40-storey tower and visual effects company DNEG has just committed to the precinct, while Dexus and Frasers Property have just gained approval for their $3 billion Central Place development.
Nearly $9.4 billion worth of Sydney office buildings changed hands in 2022, according to MSCI Real Assets, making it again the most active market in Australia.
