- The two office buildings adjoin Brookfield Place
- 36 Carrington Street has 100% occupancy
- CBRE and CI expect interest from a range of high net worth investors
As buyers circle Sydney CBD investment opportunities, neighbouring Carrington Street office buildings have been listed for sale with the $2 billion Brookfield Place development.
The builds are being offered either together or individually. The sales campaign is expected to generate significant interest from local and offshore high net worth investors.
No price range has been disclosed.
Refurbished boutique offerings luring in tenants
Harry George, Danny Shi and High Thompson of CBRE, and CI’s Mike Stokes, John Bowie Wilson and Shirley Fan have been appointed by Brookfield to market 32 and 36 Carrington Street, which directly adjoins Brookfield Place.
“These are two of the finest examples of refurbished boutique office buildings in Australia,” noted Mr George.
“More than $26 million has been invested in substantial building upgrades, delivering workspaces typically associated with premium-grade buildings.”
Mr George noted that 44% of 36 Carrington Street has been leased in recent months, taking occupancy to 100%.
“The buildings also offer strong ESG credentials and line up against HNWI wish list requirements for fully upgraded, freehold assets with attractive weighted average lease expiry (WALE) profiles and a strong market presence.”
“Only one building in this price range has traded in the Sydney CBD core in the past three years, highlighting the scarcity of investment opportunities in this category.”
Occupiers across the two buildings include software producer Alfa, national design-build firm Inscape Projects, rental housing expert Greystar, commercial and industrial energy retailer Smartest Energy and Airservices Australia.
Both of the buildings offer new foyers with new end-of-trip facilities. Both are capitalising on the revitalised Wynard precinct and have strong connectivity via the Wyrnard rail and bus interchange.
36 Carrington St, the larger of the two, offers 2,874sqm of lower ground and ground floor retail. The upper level has office space over 10 floors, while 32 Carrington Street homes 2,128 sqm of character office and retail space.
The weighted average lease expiry is 4.7 years in 32 Carrington Street to 4.3 years for 36 Carrington Street.
Presently, rentals range up to $1,220 sqm net – a rate that is comparable with prime grade office buildings in the Sydney CBD.
CI’s John Bowie Wilson said the sale campaign coincided with ongoing investor interest in the Sydney office market, one which is sought-after globally.
“These buildings will be regarded as trophy assets by Asian-based purchasers, who have a strong appetite for quality Australian commercial properties in core CBD locations,” he said.
The international expressions of interest campaign will launch within the coming weeks, with a closing date of May 26.
