Allianz joins NAB at Wynyard Place

An artist’s impression of the transformation at Wynyard Place, where Allianz is set to join NAB as a tenant.

Global real estate company Brookfield is close to securing a major new financial services tenant at its $1.8 billion Wynyard Place Sydney development and is moving to sell down some surrounding properties.

Brookfield is now favoured to pick up a key component of insurance company Allianz’s head office for its landmark development. This follows the National Australia Bank committing to the skyscraper being developed above Wynyard station where it will anchor the project.

The bank has committed to a 12-year lease for 31,000sq m from levels one to nine at 10 Carrington St. Allianz is vacating another Sydney city property — the complex at 2 Market St — where it has a 18,000sqm lease until September 2020. It will likely split its operations between Wynyard, North Sydney and a site in Parramatta.

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Brookfield last year sold almost half its stake in Wynyard Place Sydney to AMP Capital and superannuation fund heavyweight UniSuper. AMP Capital took a 25 per cent stake and UniSuper took a 24.9% share in the development.

The centrepiece of the Make Architecture and Architectus-­designed project will be a contemporary premium 27-storey office tower to be known as 10 Carrington St.

The nearby Shell House will be refurbished into ­office space and shops and 285 George St will be restored to create an ­arcade linking ­George and Carrington streets. The development is ­expected to be completed by 2020, about the same time as the George Street light rail comes online.

Brookfield is preparing to sell stakes in some properties surrounding the massive project, with its towers at 60 and 50 Carrington St to be sold either in whole or part in a move that could reap more than $300 million.

The 18-level complex at 60 Carrington St has office space over 16 levels and basement car parking. The 14,610sqm B-grade office building with ground floor retail is considered a prize as it will also benefit from the broader overhaul of the mid-town precinct of Sydney’s CBD. The property overlooks Wynyard Park and is adjacent to Wynyard rail and bus interchanges. Brookfield bought the complex in 2015 for $116.64 million and tenants include Woods Bagot, Computershare and Addisons Fidelity.

The B-grade office building at 50 Carrington St is 11,304sqm with ground-floor retail and office space over a mezzanine level and 13 upper floors. Tenants include Kannfinch, Watson Mangioni and REST Industry Super. Brookfield bought that tower from Dexus in 2014 for $85.56 million.

This article originally appeared on www.theaustralian.com.au/property.