In the largest single building sale since 2014, a Sydney CBD building has been sold for $525 million.
In the largest single building sale in Sydney since 2014, 1 Shelley Street in the CBD has been sold for $525 million. The sale was arranged by Josh Cullen and Michael Andrews of CBRE and Graeme Russell and Ben Azar of Savills. The vendor was Brookfield Multiplex, a subsidiary of the Brookfield group, a global asset manager with $240 billion in assets under management.
The purchaser was a joint venture between Charter Hall Core Plus Office, a $2.5 billion fund with exposure to high-quality Australian CBD offices, and Morgan Stanley Real Estate Investing, a global real estate investment platform, originally founded as an investment bank in New York in 1935.
1 Shelley Street, according to Sydney Cityscope, consists of two linked buildings, one of 6 and one of 11 storeys, which were completed in February 2009 at a cost of about $33m. Unique for its exterior crisscross steel frame, known as a diagrid, which supports the façade, the building has a net lettable area of 33,000 sqm, retail on the ground floor, a basement bus interchange, and parking. The buildings have a 5-star NABERS rating and their sustainable features include chill-beam air conditioning, and a heat-transfer system that cools the building by running water pipes into the adjacent harbour. It is fully leased to the Macquarie Group until 2024.
The property will likely benefit from the adjacent 22-hectare, $6 billion Barangaroo precinct development, with its planned mixture of residential, retail, commercial, community, cultural, and educational buildings. Another likely benefit will be the area’s enhanced accessibility to Wynyard Station, due to its $1 billion redevelopment.