$200m price tag for B-grade Pitt St tower
Investa Property Group’s main wholesale property fund has become the latest group to capitalise on the surging Sydney CBD office market by putting a Pitt St tower on the block for more than $200 million.
The B-grade building at 130 Pitt St comprises 9829 sqm of office space across 13 levels and about 1064 sqm of net lettable retail space on the lower two floors.
The building, on a 976 sqm site, is positioned between Martin Place and Pitt St mall and has 38m of street frontage, most of which is prime retail shop frontage.
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Ben Azar and Ian Hetherington of Savills and Josh Cullen and Rick Butler of Inc RE are handling the sale of the 1987 building.
The fund bought the complex in 2007 for $112.15 million from GE Real Estate and it is now 96% occupied with a short 2.15-year weighted average lease expiry, enabling a buyer to boost rents as the Sydney CBD rents jump. The major tenant is CMC Markets.
Azar says there is an opportunity for strong rental increases across the office and retail components in the near term.
“Most notably, any retail repositioning will directly benefit from the building’s proximity to Pitt St Mall and King St’s high end retail, not to mention the short walk to Wynyard and Martin Place railway stations,” he says.
“This is a core CBD location with dual street access which adjoins the MLC Centre and 5 Martin Place,” Cullen says. The building also has a 5-star NABERS Energy rating that appeals to local and offshore investors.