The GPT Wholesale Office Fund (GWOF) is speculated to be outlaying c$185 million for neighbouring North Sydney offices, with development plans.
On 1284 square metres, the biggest asset, 157 Walker Street, which rises 13 levels, was offered by GLL Real Estate Investors and Marprop, which paid $80.1m in late 2017; it is understood to be trading for c$125m.
The smaller property, #153, which spreads 750 sqm, was acquired from six strata owners.
Early last year the amalgamation was the subject of a 44 storey commercial tower application, which failed in planning, because GLL and Marprop weren’t consenting to it.
GWOF will apply for a 46 level office with 46,000 sqm of area – expecting construction after 2024 (when the nearby Victoria Cross metro station is complete).
Containing 8928 sqm, 157 Walker St is c14 per cent vacant; CBRE’s Michael Darcy and Rachel Vincent with Knight Frank’s Richard Casey and Liam Washburn are the leasing agents.
The sale comes two weeks since Stockland was permitted to construct a 53 storey office – North Sydney’s highest – at 110 Walker St, diagonally adjacent to #153-157.
The suburb’s present tallest building, at 39 levels, was completed in 2020 at 1 Denison St, across the road from the Stockland project.
Elsewhere in the area, Singapore’s Jaleel family last month outlaid $75m for Rydges North Sydney, at 54 McLaren St – a property also marketed for its development upside (story continues below).
In December, Keppel REIT, which is also Singapore based, acquired an unbuilt office at the corner of Blue and William streets in the suburb, for $327.7m.
Last year we reported Melbourne’s Cbus Property, with Galileo Group as a minority partner, snapped up a 4000 sqm North Sydney site with plans for a 30 storey mixed use complex.
Going by the address of 173-179 Walker St, that amalgamation cost c$150m.
“GWOF is attracted to the North Sydney market and see the potential for outperformance through strong rental growth, off the back of stock renewal and the delivery of the new (under construction) Victoria Cross metro station, in 2024,” a spokesperson said.
“This [purchase] is in line with the Fund’s growth strategy, targeting Sydney centric markets,” they added.
“153-157 Walker St sits within this precinct and benefits from exceptional view corridors to the harbour and CBD”.
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