This article is from the Australian Property Journal archive
GLOBAL law firm Ashurst has committed to anchor a new premium-grade tower at 39 Martin Place as the Sydney CBD braces for nearly 240,000 sqm of new stock to hit the market.
Ashurst will take up one-third of the 30,000 sqm of office space within one of two buildings being developed as part of the Martin Place integrated station development by Macquarie. Investa Commercial Property Fund (ICPF) and Canada’s Manulife will take ownership of the project in a 50-50 joint venture following an $800 million deal struck two years ago.
Designed by acclaimed Sydney architect, Alec Tzannes, 39 Martin Place will boast a 6 Star Green Star rating, a 5.5 Star NABERS Energy rating and a NABERS water rating of 3.5 Stars, while being 100% powered by renewable energy sources.
It will rise 28 levels and include 2,000 sqm of retail, and offer direct access to the soon to be completed Martin Place metro station, which will also connect with the existing Eastern Suburbs railway line, and with frontages to Martin Place, Castlereagh Street, and Elizabeth Street.
Completion of the building is expected in 2024. Office enquiry levels have built momentum into 2023 but vacancies lifted over the past six months from 10.1% to 11.3%, and they will have to contend with more than 90,000 sqm of new stock coming online this year and 147,000 sqm in 2024 – the highest volume in the country.
“Interest in the building has been strong, with tenant enquiry ranging from 400 to 4,000 sqm on the remaining available 20,000 sqm,” said Brendan Looby, fund manager, ICPF.
“Despite a challenging number of years brought about by the pandemic we have strong conviction in the fundamentals of premium commercial assets as shown by the fund’s acquisition of 39 Martin Place, alongside our JV partner Manulife, during the depths of the pandemic.
“Securing Ashurst as an anchor tenant validates our decision to acquire this asset.”
ICPF recently passes its 20 year anniversary, and has delivered its investor base a 9.5% total return over the life of the fund.
“Sitting atop the new Martin Place metro station in the heart of the CBD, the asset, upon completion, will transform the traditional role of an office building. The pandemic has also inspired us to future-proof the asset with world-class sustainability features and accelerate the transformation of the Martin Place precinct into a ‘place to connect and place for everyone’,”
Kiki Lai, managing director, real estate portfolio management, Asia, Manulife Investment Management said.
Lea Constantine, head of region Australia at Ashurst said, “We are pleased to have secured a tenancy for our Sydney office at 39 Martin Place. This move is aligned with Ashurst’s global strategy to create sustainable, collaborative, and agile working environments.”
