This article is from the Australian Property Journal archive
A UBS Asset Management client has put their seven-storey, A-grade Pyrmont commercial building at 19 Harris Street up for sale, the first Sydney city fringe asset of more than $100 million offered in over 12 months.
JLL’s James Aroney, Rob Sewell and Paul Noonan, together with Colliers International’s James Barber, Adam Woodward and James Mitchell have been appointed to sell the asset via expressions of interest closing August 8.
Expectations for the 12,568 sqm building are in excess of $130 million, a significant increase on the $91.919 million the current owners paid a LaSalle Investment Management fund for the asset in three years ago.
It has flexible floorplates of 2,000 sqm and is anchored by Thomson Reuters, one of 12 separate office tenants currently in the building, which has a WALE of five years.
Pyrmont has developed a reputation as a tech and creative tenant hub, home to major industry players including Google and WeWork.
“We have seen major investment in Pyrmont over the last few years, and it has now become a genuine option for tenants wanting to set up shop outside the Sydney CBD,” Aroney said. “The proximity of Pyrmont to the CBD, plus transport options and available amenity makes it incredibly appealing for a range of tenants.”
The price point is expected to attract purchasers. Aroney said premium grade Sydney CBD assets are pushing $30,000 per sqm, and A and B-grade assets between $15,000 and $25,000, with 19 Harris Street to “represent a significant discount on CBD rates”.
Interest is tipped from private investors, syndicates, domestic and offshore investors.
Pyrmont is seeing significant investment through both the public and private sectors. This is seeing tenant enquiry increase as the amenity and transportation increase.
Last month, Google purchased the Seven Network site in the suburb for a figure believed to be around $150 million, substantially adding to its footprint in the area.
The 38-42 Pirrama Road property, in the Darling Island precinct, is across from the workplace6 building at 48 Pirrama Road that Google currently occupies. The Seven Network is moving its head office to Redfern’s Australian Technology Park later this year.
Google will also be taking all 22,000 sqm at 1 Darling Island Road once Fairfax Media vacates. Fairfax is still looking for new offices, having assigned its remaining 9,000 sqm to Google earlier this year following an agreement several years ago.
Chinese-backed vendor Aqualand acquired 38-42 Pirrama Road as part of the REVY site in 2015 for total sum of $180 million, from co-owners that included Seven Group, Citta Property Group and Barana Group.
In other transaction related news, the sale of 2 Meredith St Bankstown has settled for $74.5 million. It is the second time the 13,728 sqm building has changed hands in three years.
Australian Property Journal
