MTAA Super pays $70m for Sydney’s One Hundred Broadway
Local heavyweight MTAA Super has bought the One Hundred Broadway complex in Sydney in a deal struck with the Impact Investment Group for about $70 million.
The transaction continues a run of strong sales in Sydney’s fringe office market that has seen tight deals struck in Pyrmont and North Sydney.
Frasers Property Australia and Sekisui House Australia finished building the One Hundred Broadway offices in June and had previously entered into a put and call arrangement over the property with Impact.
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Now MTAA Super will step into its shoes with the purchase the six-storey building that is leased to the University of Technology Sydney’s Graduate School of Health for an initial 15-year lease term with two more ten-year options.
One Hundred Broadway adds to the Sydney educational precinct, sitting alongside UTS’s primary campus, TAFE NSW and the University of Notre Dame.
Investors were attracted to the security of income from Moody’s Aa1 rated UTS in a brand new asset seldom available in this lot size
The 5500sqm A-Grade office tower is part of the DUO mixed residential hotel development located in the Central Park precinct in Chippendale that was designed by leading architectural firm, Foster + Partners with Architectus.
Cushman & Wakefield’s Steven Kearney, Mark Hansen and Rick Butler and CBRE’s James Parry and Brendan Shipp acted for Impact and JGS Property’s Russell Meacham advised MTAA Super.
Impact head of funds management, real estate, Darren Brusnahan, said the group had struck more than $500 million of deals in urban regeneration precincts. The firm also invested in a Lendlease development in Brisbane.
Cushman & Wakefield’s Mark Hansen says the tower generated strong interest from both onshore and offshore investors. “Investors were attracted to the security of income from Moody’s Aa1 rated UTS in a brand new asset seldom available in this lot size,” he says.
CBRE’s James Parry says there is significant demand for Sydney office investment opportunities given the market’s strong underlying fundamentals.
“Sydney’s office vacancy rate was 4.6% mid-year, with CBRE forecasting that it will soon fall to the low threes,” he says, noting that effective rents have grown 80% in the Sydney CBD since 2014.
This article originally appeared on www.theaustralian.com.au/property.
