Active Super – which until last month was known as Local Government Super – has outlaid $25 million for a former substation next door to its North Sydney headquarters.
Ausgrid was the vendor; the vacant property, 70-74 Berry Street, spreads 966 square metres, zoned B3 Commercial Core.
JLL’s Harry Sullivan and Mitch Noonan were the agents.
The buyer is now expected to propose a c40-level, c66,000 square metre office for its 3550 sqm amalgamation covering the north west corner of Walker St.
The blocks are within the Ward Street Masterplan precinct, where a new Metro station, Victoria Cross, is set to open in 2025.
They are also near an office, 32 Walker St, which EG acquired last week for c$109m.
According to the Property Council of Australia’s January 2021 Office Market Report, North Sydney’s office market contains 922,793 sqm of which 19.5 per cent is vacant.
North Sydney’s skyline set to get busier
Lendlease has also proposed a 42 floor office on airspace over the proposed Metro station.
Seven months ago, Charter Hall sold a 17-storey investment, 65 Berry St, to Intera which is expected to replace the 34 year old building with something more substantial (story continues below).
Not long earlier, private investor Paul Lederer paid Property Bank Australia $54m for 53 Berry St, at the south west corner of Miller St, which was also marketed for its significant development upside.
Also late last year, Hong Kong’s Huge Linkage outlaid $273m for a mid-rise office with a short Weighted Average Lease Expiry at 60 Miller St, at the junction of Mount St and the Pacific Highway.
That vendor was Dexus.
Thirdi Group has also recently amalgamated properties in the suburb – between 63-83 Walker St.
Presently North Sydney’s tallest tower is 1 Denison St; rising 39 levels, its highest profile tenant is Microsoft which consolidated from several suburban locations.
Software group SAP and Nine are also based at that 61,600 sqm building which is 21pc vacant.
According to Knight Frank’s latest North Shore Office Market report, 98,026 sqm of stock was added to the area in the second half of 2020.
Average net rents are now $829 per sqm, per annum, the agency added, while incentives average between 30-35pc.
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