Brookfield divests Carrington St offices

Brookfield Properties’ outgoing tenancy at 36 Carrington Street.

Brookfield has offloaded two small offices just refurbished as part of the $2 billion Brookfield Place project.

In the biggest deal, 36 Carrington Street is trading to Swiss fund manager AFIAA for $70.5 million, speculated to reflect a c4.5 per cent net market yield.

Based on the actual income – almost a quarter of the lettable area is vacant – the return would circle about 3.85pc, according to sources. The capitalisation rate is put at 4.34pc.

April Group is planning to refurbish 32 Carrington Street.

Developed in 1972, the building contains 2440 square metres of A-grade office area across nine storeys.

The basement, ground level and first floor are configured with 434 sqm of retail.

Brookfield’s upgrade also added end of trip facilities.

April swoops on Lisgar House

Meanwhile the neighbouring 32 Carrington St has sold to local fund manager April Group for $38.5m, reflecting a fully let net yield of about five per cent.

Also known as Lisgar House, the 1920s office contains 2128 sqm over 11 floors.

Despite it being offered renovated, the buyer is intending another upclass.

April is behind uber luxury commercial projects in the inner city’s Darlinghurst, Paddington and Surry Hills.

“It is a model that plays strongly to the renewed focus on staff-centric office offerings, and the move towards spaces that attract the best talent,” a company spokesperson said (story continues below).

Also today we are reporting 50 Miller Street, North Sydney, sold for c$150 million.

“The [Carrington St property] is one of only 10 freehold assets sub-5000 sqm north of Martin Place and the first this price range to trade in the past three years,” they added.

“April Group intends to further upgrade the asset including residential style finishes and add value via its fully vertical concierge approach to asset management,” according to the group.

Office apartments

Both 32 and 36 Carrington St overlook Wynyard Park.

“Our assets are about curating an experience that is akin to luxury residential spaces termed ‘office apartments,” April asset manager, Alanna Ong, said.

“When you walk into an April Group asset, you know it immediately; that is why our tenants stay with us and grow with us, and why we retain 97pc of our occupier’s long term,” she added.

CBRE’s Danny Shi, Harry George, James Parry and Michael Andrews with CI Australia’s Shirley Fan and John Bowie Wilson represented Brookfield.

The centrepiece of Brookfield Place is a 59 storey office, 40pc of which is leased to NAB.

Co-work outfit Hub, financial services giants Moelis Australia and Allianz, and Brookfield also committed to parts of that skyscraper.

Straddling Wydnham train station, the project also includes 7000 sqm of retail around a revived Wynyard Lane and a refurbishment of historic buildings, Shell House and 285 George St.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of