This article is from the Australian Property Journal archive
A SYDNEY office tower home to luxury giant Cartier across its retail component has been snapped up by property fund manager Charter Hall for $160.1 million.
The 17-level building at 74 Castlereagh Street will be held by a new wholesale partnership that is expected to reposition both the retail and office components.
It has 5,475 sqm of floor area, including 4,209 sqm of offices with smaller floor plates of about 350 sqm, and 1,265 sqm of retail space across the lower ground, ground, mezzanine and first floors.
Cartier will be vacating its prime floors late next year. The space is next Hermés Australia and the Chanel store, is opposite Westfield Sydney and is close to the David Jones store on Elizabeth Street that is owned by another Charter Hall-managed fund.
The offices are occupied by a variety of law, consulting, IT and investment firms and serviced offices.
The sale price was confirmed by Colliers. Agents Vince Kernahan, James Girvan and Callum Cookie brokered the sale on behalf of private family office Country State Development Pty Ltd.
The new owners could take on repositioning of the building as the smaller end of market remains relatively more active and as prime rents lifted by about 2% over the past quarter in the Sydney CBD, reaching an average of $925 per sqm.
The wholesale partnership now in control of the property is backed by Charter Hall’s existing domestic institutional partners, with Wyllie Group among those taking minority interests. Wyllie holds interests in direct property and public and private companies. Its assets include the Perth Convention and Exhibition Centre, which in recent months attracted a major investment from Brookfield.
