Brookfield, Oxford Nab Super Fund for Major Lease

Brookfield Properties and Oxford Investa Property Partners has secured First State Super as a new tenant for a 10-year lease over a 9,500sq m format office space in 388 George Street, in Sydney's CBD.

The Sydney office tower is currently undergoing significant refurbishment, which will see the transformation of both the 28 level office tower and new and expanded retail.

Upon completion, the commercial tower will comprise approximately 35,000sq m of net lettable area and new floor plates connected by light-filled atriums.

“We are very pleased to welcome First State Super to 388 George Street and look forward to delivering a state of the art mixed-use building for the benefit of our customers,” Oxford investments director Alec Harper said.

First State will now relocate over 550 superannuation and financial advice specialists from their existing tenancy on Clarence Street.

▲ Impression of the new-look retail and office podium at 388 George Street, Sydney.. Image: fjmt

“We look forward to moving into 388 George Street next year following the major refurbishment of the building,” First State Super head of workplace Matthew Nolan said.

The 28-storey tower was previously known as the American Express building, then NRMA and now IAG House, was completed in 1976 and refurbished in 1998 and 2009.

The property comprises basement and ground floor retail, being a Coles supermarket, the office accommodation and on-site parking for 80 vehicles.

The co-owners lodged plans in May for a $54 million five-storey retail and commercial addition to a landmark Sydney CBD tower.

The proposed building on the tower's forecourt, comprises three levels of offices, three levels of shopping and a rooftop terrace ­devoted to leisure use.

Looking ahead, the tower is also set to benefit from the regeneration of the Sydney CBD. Its prime location on the corner of George and King Street will place it along the George Street light rail development.

First State moves in on build-to-rent

First State Super, which has $91 billion in funds under management, has backed the potential of the emerging build-to-rent sector.

The industry super fund has partnered with private real estate funds management business Altis to lease apartments in Sydney's Epping as key-worker rental units.

First State purchased the 61 apartments located at 1-5A Cliff Road and 6-10 Carlingford Road in Sydney's north with Altis in May.

The opportunistic acquisition came after the apartments' developer fell into the hands of receivers and managers.

It is understood First State plans to lease the apartments at 80 per cent of the market rent in the area.