Australian office real estate trust GPT Wholesale Office Fund (GWOF) has bought two older office buildings, including one jointly owned by German fund manager GLL, in North Sydney for around A$185m (€122m).
The unlisted A$10bn fund, managed by GPT Group, bought the buildings in the keenly sought-after commercial location of Walker Street, where several billions of dollars of office buildings are either underway or planned.
GPT did not disclose the price paid for the two buildings.
But market sources said GPT paid A$60m for the smaller building at 153 Walker Street, and around A$125m for the adjoining 157 Walker, which was jointly owned by GLL and Australian property fund manager, Marprop, which paid A$80.1m in 2018 for the asset.
A GPT spokesperson said: “GWOF is attracted to the North Sydney market as it sees the potential for outperformance through strong rental growth off the back of stock renewal and the delivery of the new (under construction) Victoria Cross metro station in 2024.”
GPT saw the redevelopment opportunity in North Sydney, which had an ageing office stock in a market that had limited available premium office space and strong take-up of such buildings, she said.
GWOF was planning to create a “leading workspace” in North Sydney.
The spokesperson said the North Sydney area was being transformed with new and proposed development. “These projects have largely centred around the new metro station, Victoria Cross.”
The GPT fund is now working to secure approval for a premium tower of about 46,000sft, which could have a completed value of up to A$2bn. But construction is unlikely to start before the opening of the station in 2024.
GWOF is currently developing a A$1.6bn office precinct in Parramatta, in Sydney’s west, where it currently owns a number of office buildings.
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