Stockland is paying $121 million for two North Sydney offices adjacent to another it owns at 110 Walker Street (pictured, top).
The acquisitions of 118 Walker Street and 122 Walker Street more than double the ASX-listed property giant’s landholding to nearly 2300 square metres.
The developer said it plans to soon lodge an application to replace the holding with a c60,000 sqm commercial complex.
At the moment, the three existing buildings accommodate 10,000 sqm of lettable office space – which is fully occupied
Stockland managing director and chief executive officer Mark Steinert said the acquisitions align with its broader strategy “to up-weight our workplace portfolio and increase our development pipeline, particularly through Sydney and Melbourne opportunities that enhance long-term income and valuation resilience”.
“These acquisitions will increase our exposure to the strong office market, with a view to unlocking additional future development potential for new office and street level retail,” Mr Steinert said.
The company’s chief executive officer of commercial property, Louise Mason, said demand and supply fundamentals for workplace assets on Australia’s east coast is strong.
North Sydney, Ms Mason isolated, “is undergoing a significant transformation, with infrastructure investment including the new Victoria Cross Metro Station development driving increased tenant demand for the precinct”.
“We also expect tenant demand for new, contemporary workspaces with large floorplates to continue to increase as North Sydney grows and transforms.
“Subject to approvals, the amalgamated Walker Street site will have the potential to accommodate up to 60,000 square metres of prime office space in the future,” Ms Mason said.
“We look forward to working with North Sydney Council and local stakeholders to progress our proposed plans for this site”.
The acquisition of 118 Walker Street was finalised today. Stockland hopes to settle on 122 Walker Street by next July.