AMP Capital grabs two more buildings at Wynyard Place
Funds manager AMP Capital has tightened its grip on the Sydney precinct surrounding Wynyard station, buying half stakes in two buildings in Carrington St worth about $500 million in their entirety.
The buildings, at 50 and 60 Carrington St, sit near the $2 billion Wynyard Place development. The half stakes are being sold by global real estate company Brookfield, which is driving the overhaul of the area.
The Canadian group earlier this year indicated that it was preparing to sell stakes in the properties surrounding the massive project, and it considered selling the towers at 50 and 60 Carrington St either in whole or part.
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Cushman & Wakefield’s Josh Cullen and Steven Kearney brokered the off-market transaction.
The sale tightens links between Brookfield and the Australian group. Brookfield last year sold almost half its stake in Wynyard Place Sydney to AMP Capital and super fund UniSuper. AMP Capital took a 25% stake and UniSuper took a 24.9% share in the development. The Carrington St purchase is understood to be for a mandate client.
Both buildings fit within the precinct, which is being transformed by improvements to Sydney’s transport network, including the new metro network and light rail project.
They are substantial properties in their own right.
The 18-level complex at 60 Carrington St has office space over 16 levels and basement carparking. The 14,610sqm B-grade office building with ground-floor retail is well positioned as the mid-town precinct of Sydney’s CBD is overhauled.
The property overlooks Wynyard Park and is adjacent to rail and bus interchanges. Brookfield bought the complex in 2015 for $116.64m. 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.
The Brookfield development has won key tenants and will soon become the head offices of both National Australia Bank and insurance company Allianz.
NAB’s commitment will anchor the skyscraper being developed above Wynyard station. The bank has committed to a 12-year lease for 31,000sqm 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 — and is splitting its operations between Wynyard, North Sydney and a site in Parramatta, in the city’s west.
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 Street.
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.
This article originally appeared on www.theaustralian.com.au/property.