Mitsubishi Picks Up 25pc Stake in Pitt Street Tower

One of Japan’s largest property developers has bought a 25 per cent stake in a Sydney CBD office tower.

Mitsubishi Estate Co has entered a joint venture with Oxford Properties Group and Investa to deliver Parkline Place, a 39-storey office tower above the Pitt Street Metro Station, with construction expected to begin soon.

Cimic Group’s CPB Contractors was awarded the contract to build the tower, in addition to the metro station and the build-to-rent tower on the over-station development.

The 39-storey premium office building and retail precinct will include 47,800sq m of office space and 1290sq m of retail space.

Slated for completion in 2024, the office building will accommodate more than 4500 people and will include industry-leading smart building features, such as digital twin building modelling for real-time operations insight and management, and sustainability features.

Investa chief investment officer Penny Ransom said the Mitsubishi Estate joint venture partnership would help deliver the Parkline Place project.

“The strong development and investment track record of both Oxford and MEC globally will support the delivery of one of Sydney’s leading new premium-grade office buildings,” Ransom said.

“Located in the vibrant heart of the CBD, Parkline Place will provide a leading new-generation workplace for our future tenants.”

Oxford Properties head of Australia Alec Harper said he was pleased to be working in partnership with Mitsubishi Estate to “redefine the modern workplace in Australia”.

“Mitsubishi Estate’s investment in the project is another demonstration of the strong appetite among global institutional capital for high-quality office product that Oxford is seeing play out in key gateway markets around the world,” Harper said.

The Foster + Partners designed building is expected to be completed in the first quarter of 2024.

Project director of Pitt Street North Nellie O’Keeffe said the “city-defining” project showed confidence in Sydney’s CBD office market.

The approved plans are for a 177m-high building with 55,743sq m of ground floor area including the train station, mezzanine, plant levels and two sky lobbies.

There are also four retail tenancies, storage, station management and building services on the ground floor with flexible commercial space starting at level five.