Australian super fund MTAA Super has acquired the freehold stratum interest in commercial building One Hundred Broadway for a reported $70 million.
The 5,500sq m A-grade office tower sits amid the $2 billion urban renewal Central Park precinct in Sydney’s inner southern suburb of Chippendale.
MTAA Super purchased the building with all 6-storeys fully-leased to the University of Technology Sydney over a 15-year lease.
Vendor, fund Manager Impact Investment Group listed the six-level property, located on the corner of Abercrombie Street and Broadway in May this year.
Frasers Property Australia and Sekisui House Australia finished construction of the commercial offices in June this year, entering into a put-and-call arrangement with Impact Investment Group.
The tower is part of the DUO mixed residential hotel development located within the Central Park precinct, designed by architects Foster + Partners in collaboration with Architectus.
Cushman & Wakefield’s Steven Kearney, Mark Hansen and Rick Butler along with CBRE’s James Parry and Brendan Shipp brokered the deal on behalf of Impact Investment Group.
Due to strong market fundamentals, Cushman & Wakefield’s Mark Hansen said there is significant demand for Sydney office investment opportunities.
“Sydney’s office vacancy rate was 4.6 per cent mid-year, with CBRE forecasting that it will soon fall to the low threes.
“Office rentals have reached record highs, with effective rents in the Sydney CBD having grown 80 per cent since 2014.”
Impact head of funds management Darren Brusnahan said the group had made more than $500m of transactions in Australian urban regeneration precincts.