Shayher Group has acquired a 100% freehold commercial asset in the heart of the Sydney CBD from AEW for $199 million, as local and offshore privates and institutions battle it out for safe haven investments across NSW.
Located at 10 Barrack Street, the 13 level, A-Grade office tower sits on a 1,040 sqm site with a NLA of 9,627 sqm and a 3.5 year Weighted Average Lease Expiry (WALE).
The building holds an unbeatable location for convenience and amenity, set right on the doorstep of Sydney’s George Street and Martin Place and benefits from a significant capital works programme of $7.8 million that has completely transformed the asset, whilst simultaneously achieving extraordinary sustainability credentials.
10 Barrack Street now holds a 5-star NABERS Energy rating, 4.5-star NABERS Water rating and Certified Carbon Neutral by Climate Active, making the building a market leader in sustainability.
The sale was negotiated through CBRE’s James Parry and Flint Davidson in conjunction with Cushman & Wakefield’s Josh Cullen and Mark Hansen.
James Parry, State Director of Capital Markets at CBRE, said, “There is substantial buyer interest for well located Sydney CBD office assets, with the continued strength in the leasing market underpinning strong pricing outcomes. With an extensive refurbishment of the building having only just been completed, the new owner will enjoy significant rent reversion over the coming 36 months as existing leases expire.”
Mark Hansen, International Director - Capital Markets at Cushman & Wakefield said “10 Barrack Street was an attractive investment that generated significant buyer interest ranging from privates to institutional investors locally and abroad.
“Purchasers were drawn to its super core CBD location, proximity to public transport on a lot size that has become very rare in the CBD.
“The successful outcome is evidence of the Sydney CBD’s strong office leasing performance, with 10 Barrack proving resilient throughout Covid-19; a testament not only to the refurbishment completed by AEW, but 10 Barrack Street’s highly coveted position in the market,” he said.
Jason Maxwell, Country Head – AEW, noted, “The divestment of 10 Barrack Street marks what we believe to be a successful turnaround story, whereby we acquired a well-located property, in an evolving precinct that required a significant capital improvement. As a result of the upgrades we’ve implemented, the building has attracted strong tenants on favourable terms, reinforcing the success of the program.”