The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
2 WEEKS UNTIL OUR UNMISSABLE FLAGSHIP CONFERENCE MORE THAN 550 ALREADY ATTENDING
2 WEEKS UNTIL OUR FLAGSHIP CONFERENCE 550+ ALREADY ATTENDING
REGISTER NOWDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
68
print
Print
RetailDinah Lewis BoucherTue 02 Jul 19

Developer Sells Pyrmont Office to Suntec REIT for $297m

4730b5ca-c4fb-4511-b08b-1e5c0e5e836b

Singapore-based Suntec REIT has secured a 100 per cent interest of a freehold property in Sydney’s technology, media, and entertainment hub precinct of Pyrmont.

Suntec REIT entered into a put and call option deed to purchase 21 Harris Street, which sits on Sydney’s inner-city fringe two kilometres from the CBD, and is currently under development by Sydney developer Milligan Group.

When complete the Bates Smart-designed property will be an A-grade, nine-storey, campus style commercial office building with three basement levels.

Suntec REIT will pay $297 million for the Sydney project, which includes the purchase price for the property at $119 million and expected fees for development services of around $178 million.

While the property is 91.2 per cent pre-committed, the deal incorporates developer Milligan to provide rent guarantee on the unlet office space for three years following practical completion.

The weighted average lease expiry of the property, including rent guarantee, is approximately 10.2 years (by NLA) with an annual rental escalation of between 3-and-4 per cent.

The property will be anchored by Publicis Groupe, a global communications and marketing company, as their Sydney headquarters.

▲ Plans for 'Workshop' - 21 Harris Street Pyrmont.


Suntech chief executive Chong Kee Hiong described the purchase as a “strategic fit” with Suntec REIT’s portfolio.

“We are pleased to deepen our presence in Australia with the acquisition.”

"Following the completion of this acquisition, approximately 14 per cent of Suntec REIT's assets under management will be in Australia.”

Suntec REIT holds a 100 per cent interest in a commercial building at 177 Pacific Highway Sydney, a 50 per cent interest in Southgate complex in Melbourne, and a 50 per cent interest, purchased from Mirvac, in landmark commercial building Olderfleet 477 Collins Street in Melbourne.

The Pyrmont purchase is expected to be completed in the first quarter of 2020, following practical completion.

Sydney’s Pyrmont has a strong record attracting major tenants such as Google, The Star Entertainment Group and Paramount Pictures.

The Harris Street asset will have an estimated total net leasable area of 18,888sq m, along with retail space and 170 car park lots.

Established in 2010, developer Milligan Group’s current Sydney projects include 20-22 William Street Beaconsfield, 10-14 Cooper Street Surry Hills, with completed projects including 820-838 Elizabeth Street Waterloo and 80-88 Regent Street Redfern.

RetailAustraliado not useConstructionTechnologyReal EstateConstructionDeal
AUTHOR
Dinah Lewis Boucher
More articles by this author
ADVERTISEMENT
TOP STORIES
The Port of Brisbane has released its Vision 2060 which details the need for inland rail connectivity
Infrastructure

Brisbane Port’s $15bn Future Faces One Big Obstacle

Renee McKeown
5 Min
Freecity Rouse Hill triple towers 2 Tempus Street
Exclusive

Freecity Takes Covers Off $330m Triple Towers in Sydney’s North-West

Leon Della Bosca
5 Min
Parallel Workshops Stockdale Housing PBSA project
Exclusive

Suburban Success Story Turns PBSA Thinking on its Head

Leon Della Bosca
7 Min
Exclusive

Interstate Developers Find Lots to Love in ‘Progressive, Affordable’ SA

Taryn Paris
5 Min
Bates Smart Richmond Sportslink HERO
Exclusive

BtR Focus Drives Bates Smart’s Richmond Sportslink Concept

Leon Della Bosca
6 Min
View All >
Industrial

Inland Rail: Site at Rural Hub Comes to Market in Victoria

Lindsay Saunders
The Port of Brisbane has released its Vision 2060 which details the need for inland rail connectivity
Infrastructure

Brisbane Port’s $15bn Future Faces One Big Obstacle

Renee McKeown
Logan Wastewater Funding hero
Infrastructure

Flush of Funding to Deliver 20,000 New SEQ Homes

Phil Bartsch
Without the $135.98-million injection it is claimed the Logan City Council would have had to stop approving new housing …
LATEST
Industrial

Inland Rail: Site at Rural Hub Comes to Market in Victoria

Lindsay Saunders
2 Min
The Port of Brisbane has released its Vision 2060 which details the need for inland rail connectivity
Infrastructure

Brisbane Port’s $15bn Future Faces One Big Obstacle

Renee McKeown
5 Min
Logan Wastewater Funding hero
Infrastructure

Flush of Funding to Deliver 20,000 New SEQ Homes

Phil Bartsch
3 Min
Residential

Home Affordability Gap Widens Across Asia-Pacific

Lindsay Saunders
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/developer-sells-pyrmont-property-under-construction-for-297m