Property heavyweight CBRE Global Investors has picked up the under-construction future headquarters of Zurich Financial Services in North Sydney in a deal worth around $350 million.
CBRE Global Investors purchased the A-grade office asset, which had been on the market since late 2018, via a fund-through transaction on behalf of German real estate Spezialfonds.
The 118 Mount Street office development is being developed by the Swiss-based Zurich Insurance Group and delivered by construction firm Roberts Pizzarotti.
The 21,012sq m property will be the headquarters of Zurich Financial Services Australia, which has committed to more than 64 percent of the building.
Zurich’s head of real estate for Australia Reto Buehler said Australia was part of the group’s “global investment strategy”.
“With the sale and leaseback of 118 Mount Street, we have achieved important milestones,” Buehler said.
“This property will provide our Australian business with new purpose-built headquarters and support the diversification of our global real estate investment portfolio.”
This month Stockland purchased 118 Walker Street and 122 Walker Street for a combined price tag of $121 million.
While Dexus reached practical completion on its $600 million office 35-storey tower at nearby 100 Mount Street, earlier this year.
“The North Sydney market is undergoing a revitalisation with a significant infrastructure spend,” CBRE Global Investors Managing Director-Australia and New Zealand Chris Johnston said of the group's latest buy.
North Sydney is expected to benefit from the Victoria Cross Metro station and new Metro rail link connecting it to Barangaroo and Martin Place, when completed in 2024.
Cushman & Wakefield’s Richard Butler and Mark Hansen represented Zurich in the transaction.
Hansen described the North Sydney market as a “destination of choice for global capital”.
“Having attracted more than $1 billion in investment in the past 12 months from Singapore, USA, United Kingdom, Hong Kong and Mainland China,” he said.
Completion of 118 Mount Street, located on the eastern side of the North Sydney precinct, is expected late next year.