‘White Knight’ Cbus Property Takes 50pc Stake in Halo Tower

Cbus Property will acquire a 50 per cent interest in the landmark Halo office tower site in Sydney’s CBD.  

The wholly owned entity of Cbus Super will partner with Australian property developer Milligan Group to jointly deliver the corner site at 15-25 Hunter Street and 105-107 Pitt Street.

The deal has been widely seen as stabilising one of the city’s most complex and high-profile commercial developments.

Milligan spent years consolidating more than 70 separate titles to assemble the site, but according to some reports, the weight of private credit debt had placed the project under significant financial pressure.

Some in the industry see Cbus Property’s entry as effectively a “white knight”, bringing the capital, delivery capability and institutional backing needed to progress the development.

At 55 storeys, the $1.8-billion tower would become the world’s tallest hybrid timber tower comprising more than 40,000sq m of premium office and retail space.

Designed as a 100 per cent all-electric tower, it will target a 6-Star Green Star Buildings v1 rating and a 5.5-Star NABERS Energy rating, achieving a 25 per cent improvement on current standards.

An extensive façade and building-integrated photovoltaic system are expected to enhance the project’s “industry-leading sustainability credentials”.

The tower would have direct access to the new Hunter Street Metro station and be near Martin Place, Circular Quay and Sydney Harbour.

Cbus Property and Milligan Group said they were working with Multiplex under an early contractor involvement agreement. 

“This acquisition is a strong reflection of our strategy to secure well-located commercial assets that respond to future customer demand,” Cbus Property chief executive Adrian Pozzo said.

▲ Cbus Property chief executive Adrian Pozzo: Halo “an incredible opportunity to contribute to the renewal of Sydney’s CBD”.
 

“It supports our portfolio reweighting to Sydney and continues our track record of delivering high-quality developments that capture market uplift.”

Pozzo said Halo was “an incredible opportunity to contribute to the renewal of Sydney’s CBD with a landmark building that sets new benchmarks for sustainability, design and workplace experience”.

“Our investment in the project reflects Cbus Property’s confidence in the long-term strength of the Sydney office market, as well as our commitment to delivering premium, future-focused workplaces for our stakeholders and tenant customers.”

Milligan Group said it had been working collaboratively with the City of Sydney to progress the project.

Milligan Group managing director James Milligan said Halo was “widely recognised as an ambitious project that has the potential to redefine sustainability, design and workplace experience in Australia”.

“Cbus Property’s involvement will ensure the project benefits from the company’s proven track record in delivering complex, large-scale developments in partnership with leading industry participants.”

Construction of the main works is anticipated to begin in late 2026 ahead of practical completion early in 2030, during a period when it is anticipated there will be limited new premium-grade office supply in Sydney’s CBD.