Property Development

Stockland spends $121 million on neighbouring North Sydney offices to create super-site

Written by The ReReport
As seen in the Source link, written by realestatesource.com.au on 2019-11-08 16:51:25

Stockland is paying $121 million for two North Sydney offices adjacent to another it owns at 110 Walker Street (pictured, top).

The acquisitions of 118 Walker Street and 122 Walker
Street more than double the ASX-listed property giant’s landholding to nearly
2300 square metres.

The developer said it plans to soon lodge an application
to replace the holding with a c60,000 sqm commercial complex.

A Google Maps image of the adjoining low-rise North Sydney buildings at 110 Walker Street, 118 Walker Street and 122 Walker Street (marked). Stockland plans to build a c60,000 square metre commercial complex on the amalgamated c2300 sqm landholding.

At the moment, the three existing buildings accommodate
10,000 sqm of lettable office space – which is fully occupied

Stockland managing director and chief executive officer Mark Steinert said the acquisitions align with its broader strategy “to up-weight our workplace portfolio and increase our development pipeline, particularly through Sydney and Melbourne opportunities that enhance long-term income and valuation resilience”.

“These acquisitions will increase our exposure to the
strong office market, with a view to unlocking additional future development
potential for new office and street level retail,” Mr Steinert said.

The company’s chief executive officer of commercial
property, Louise Mason, said demand and supply fundamentals for workplace
assets on Australia’s east coast is strong.

North Sydney, Ms Mason isolated, “is undergoing a
significant transformation, with infrastructure investment including the new
Victoria Cross Metro Station development driving increased tenant demand for
the precinct”.

“We also expect tenant demand for new, contemporary
workspaces with large floorplates to continue to increase as North Sydney grows
and transforms.

“Subject to approvals, the amalgamated Walker Street site
will have the potential to accommodate up to 60,000 square metres of prime
office space in the future,” Ms Mason said.

“We look forward to working with North Sydney Council and
local stakeholders to progress our proposed plans for this site”.

The acquisition of 118 Walker Street was finalised today.
Stockland hopes to settle on 122 Walker Street by next July.

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