US-headquartered CBRE Global Investors has purchased an office development on behalf of a German real estate Spezialfonds, tapping into the major infrastructure investment in North Sydney.
CBRE GI acquired the 118 Mount Street project in North Sydney from Zurich Insurance Group, which is developing the 21,012 sq.m. asset to house the headquarters of Zurich Financial Services Australia, according to CBRE GI.
The project is located on the eastern side of the North Sydney precinct, near the new Victoria Cross Metro station and a new Metro rail link connecting North Sydney to the CBD, which is scheduled for completion in 2024.
“The North Sydney market is undergoing a revitalisation with a significant infrastructure spend,” said Chris Johnston, managing director – Australia and New Zealand at CBRE Global Investors.
Financial details of the fund-through deal were not disclosed. The asset is due for completion in Q4 2020 and will feature three street frontages and 817 sq.m. floor plates, as well as a cafe, rooftop terrace and end-of-trip facilities.
It is also aiming for high sustainability credentials, including a five-star NABERS Energy rating and five-star Green Star rating.
Located north of Sydney Harbour, the North Sydney market is close to the CBD and offers a solid base of existing tenants while attracting new tenants looking to relocate from suburban locations.
“With the sale and leaseback of 118 Mount Street, we have achieved important milestones as this property will provide our Australian business with new purpose-built headquarters and support the optimal diversification of our global real estate investment portfolio,” said Reto Buehler, Zurich’s head of real estate of Australia.
“Notwithstanding the sale, Australia will remain part of our global investment strategy.”
Cushman & Wakefield represented Zurich in the deal.
CBRE Global Investors is a global real asset investment management firm with US$106.2bn in assets under management.