Sydney World Square towers targeted in $450m bid from Investa and Barrenjoey

The offices up for sale are part of the larger World Square complex. Picture: John Appleyard

Funds house Investa and investment bank Barrenjoey are making a $450m play for the 50 per cent stake in two office buildings in the World Square precinct in Sydney’s central business district that are being sold by Brookfield.

The groups, with office specialist Investa lined up to handle investment and property management and the bank on the funding side, are circling the interest put on the block by the Canadian giant as dealmaking in the office sector picks up.

The deal, if completed, would mark yet another office trade in the recovering office market, where dealmaking has jumped ­nationally. While the metrics will probably show it as a counter-cyclical move, it could be among the last of this type, as core money is now chasing even larger deals.

After a period when few offices changed hands, fund managers are now leading the charge back into the market, betting on improved leasing conditions, tightening vacancies and the lack of new stock for tenants.

Savills’ Ben Azar, Ben Schubert and Adrian Bokolis and JLL’s Luke Billiau, Simon Storry and Kate Low marketed the building, but they and the parties declined to comment.

Brookfield moved early to capture the market shift with the offer of the Sydney asset, as well as buildings in Perth.

For Investa and Barrenjoey, the move would show their faith in the sustainability of the recovery, particularly for well-located ­assets. Investa had worked with US group BGO to bid about $1.35bn for US private equity firm Blackstone’s 75 per cent interest in Grosvenor Place. However, GPT emerged with a half-stake in the $1.72bn tower after the Commonwealth Superannuation Corporation exercised pre-emptive rights it held as a 25 per cent owner of the Harry Seidler-designed tower.

Sydney’s Pop Mart store at World Square. Picture: John Appleyard

Office buildings appear to be following this pattern of recovery with funds managers active in Sydney. Forza Capital is also tying up the purchase of a North Sydney tower and AsheMorgan is chasing a block near Barangaroo.

In Melbourne, foreign groups are returning, with TCA picking up a Docklands building occupied by Monash, though the market has been dominated by local players such as Bayley Stuart that have capitalised on the absence of international players from most deals.

Brisbane has also seen activity, with purchasers ranging from Singapore group Aravest to superannuation fund-backed Aware Real Estate buying buildings.

Brookfield put the half stake in the two office buildings at Sydney’s World Square complex on the block two months ago. The offer of the interest in 680 George Street and 50 Goulburn Street was tipped to appeal to counter-cyclical buyers keen to ride the improvement in parts of the office cycle.

Overall, they comprise 67,796sq m of space and are multi-tenanted, with the buildings able to be upgraded so they are carbon-neutral. The 36-storey complex was built in 2004 and renovated in 2024. There is parking for 321 cars.

The buyers are targeting the George Street complex as it is rare A-grade accommodation in the heart of the World Square retail precinct, which has more than 100 retail outlets. Sydney CBD’s southern precinct is taking off, with notable tenants including Government Property NSW, TAB and WSP Australia.

The building is co-owned by the Australian Wholesale Property Fund, which was formerly the Allco Wholesale Property Fund. It is now effectively owned by large superannuation funds.