LaSalle Investment Management’s confidence in the North Sydney office market has strengthen with its latest acquisition at 88 Walker Street worth about $170m.
The 49-storey Billbergia-developed tower will be North Sydney’s tallest structure comprising 24 levels of commercial office space and a 25 storey hotel cantilevered over the existing Firehouse Hotel. LaSalle will acquire the 11,700sqm office space which commences from level 25 and sits within a separate freehold stratum.
Singapore-based Ascott Limited and together with the Qatar Investment Authority struck a deal with Billbergia back in 2019 to acquire the 252 room Hotel stratum for $202m to run a Citadines Hotel brand.
Billbergia originally acquired the site and 14 storey B Grade office Building in 2018 for approximately $32m and secured the air rights above the Fire House Hotel in the following year. The project is expected to be completed in early 2023 with several key tenants already pre-committed to the office space.
The building seeks to maximise space and natural light with breathtaking views across Sydney Harbour. Targeting mid sized firms seeking new fresh open plan layouts, the building offers 560sqm whole floors, part floors or multi floors with interconnected Skylink access.
Appointed Leasing Agent Dan Walker of Colliers “said this building was typical of what Colliers’ was experiencing in the office market more broadly with tenants taking the opportunity to upgrade in building quality and amenity.”
North Sydney has seen a surge in development plans spurred on by the entry of the Metro Rail and the revised North Sydney Planning scheme. Lendlease, Stockland, Pro-Invest and Third.i, are each pursuing pre-commitments to large scale developments hoping to secure a wave of tenants expected to take advantage of the location and amenity that North Sydney will now offer.
88 Walker Street is however the only building under development which is able to provide tenants the certainty of completion and occupation in the next 12 months.
The complicated off market deal for 88 Walker Street was introduced to LaSalle by Chauvel Capital Partners.
Last year LaSalle also acquired 201 Miller St in North Sydney, picking it up from the Dexus Office Partnership on a 5.2% yield for $155.0m.
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