The Sydney CBD fringe office market continues to demonstrate strength as the year draws to a close. An office building at 19 Harris Street, Pyrmont has been sold for $143 million in a sale arranged by JLL Sydney and Colliers International.
Fully leased, the sale represented an initial yield of 4.87% on passing income of $6,964,100. The purchaser AEW, one of the largest real estate investment managers in the world with over $73 billion in assets under management, will place the asset in its AEW Value Investors Asia Fund.
19 Harris Street is an A-grade office building with seven levels of office space and two levels of basement parking with parking for 138 vehicles. With a building area of 12,568 sqm, the property has very large floor plates of 2,000 sqm. Major tenants include Thomason Reuters, L'oreal Australia and Sealord. It is ideally located close to the light rail, waterfront shops and parks and in an area increasingly becoming a tech hub, already home to Google.
The property was sold by Kuehne Real Estate Sydney Pty Ltd, a subsidiary of Kuhne Holding AG, a private company based in Switzerland. It purchased the building for $91,919,000 in June 2015.