Boston investment group buys up more Sydney assets
Boston-based investment manager AEW Capital Management has bolstered its Australian holdings with the $143 million purchase of a Pyrmont office building in one of the largest plays in Sydney’s fringe market this year.
The group bought the complex at 19 Harris St from a private client of UBS Asset Management, which picked it up for $92 million in 2015.
The latest deal showed a rate per square metre of $11,378 and a crisp passing yield of 4.87%. AEW will put the asset into it Value Investors Asia fund series that has been active across Sydney.
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The seven-storey A-grade building was sold by JLL’s James Aroney, Paul Noonan, Rob Sewell and Stuart McCann and Colliers International’s James Barber, Adam Woodward and James Mitchell.
Pyrmont is developing a resemblance to global tech precincts including San Francisco’s South of Market, the Meatpacking District in Manhattan and East London Tech City. Google and WeWork are tenants common to all these markets, as they are in the inner-Sydney suburb.
The 12,568sqm building has campus-style flexible floor plates of about 2000sqm. Thomson Reuters is anchor tenant and L’Oreal Australia is among the 12 occupants of the fully leased building, which has a weighted average lease expiry of five years.
AEW last year bought 54 Miller St in North Sydney from Chinese-backed Aqualand for about $60 million. It also picked up 50 Pitt St, Sydney for about $165 million out of the TrustCapital Advisors portfolio, as well as 10 Barrack St from Bright Ruby for just over $138 million.
This article originally appeared on www.theaustralian.com.au/property.