The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Urban Leader Awards Logos RGB White
EARLY BIRD ENDING THIS THURSDAY START YOUR NOMINATIONS TODAY
EARLY BIRD ENDING THIS THURSDAY URBAN LEADER AWARDS
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
OtherMon 29 Jan 18

Credit Suisse Offloads 50% Stake in Sydney Building

0f15f1e0-0af6-48d7-8343-f57390af8af2

Financial holding company Credit Suisse have announced that they intend to sell a 50 per cent stake in a triple A-rated office building in the heart of Sydney’s CBD.

Located at 52 Goulburn Street, the building is one of six prime-grade assets larger than 10,000 square metres that have been built in Sydney’s midtown precinct since 2007. Global alternative asset manager Brookfield own the other 50 per cent share.

It is currently leased until 2022 to the Australian Tax Office with a 4.6-year WALE and fixed annual increases of 3.5 per cent.

“52 Goulburn Street will be attractive to investors looking for assets with strong covenants offering security of income,” JLL Head of Sales and Investments Paul Noonan said.

The sale comes a week after the world’s largest real estate owner, Blackstone, sold its 50 per cent share in Sydney’s Westpac headquarters in a transaction expected to yield more than $800 million.

[Related reading: Investors Double Money on Sydney Tower]

Credit Suisse will be expecting a positive result from an inevitable sale, as the Sydney CBD office market recorded a 6 per cent increase in demand for office space to 185,555 square metres in in the fourth quarter of 2017, up from 174,330 square metre in the same period during 2016.

Sydney CBD net absorption was positive in 2017 and vacancy tightened to 5.4 per cent. Low vacancy continues to exert upward pressure on Sydney CBD rents.

[Related reading: Strong Employment Growth Puts Pressure on Office Space in Sydney, Melbourne]

The latest market research revealed leasing activity was concentrated in good quality assets with the prime grade vacancy rate, compressing to 5.1 per cent which was the lowest since it’s been since 2008. Prime gross effective rents increased by 20.5 per cent over 2017.

52 Goulburn Street offers 23,104 square metres net lettable area, in addition to basement parking for 210 vehicles. The building boasts a NABERS energy rating of 5.5 stars.

OtherOfficeAustraliado not useReal EstateDeal
ADVERTISEMENT
TOP STORIES
Exclusive

New Wave of Capital Washes Over Evolving Surf Park Sector

Phil Bartsch
10 Min
North Sydney TUD Plus HERO
Exclusive

NSW Housing Fix Tips North Sydney into New Era

Vanessa Croll
7 Min
 GemLife site Currumbin Waters EDM
Exclusive

Pop-Out Apartments Power GemLife’s $450m Vertical Experiment

Clare Burnett
6 Min
Scape's Gurrowa place artist impression
Exclusive

Red Tape Blocking PBSA Housing Crisis Help, says Sector Pioneer

Leon Della Bosca
5 Min
Rob Stokes on Faith Land Housing Opportunities across australia
Exclusive

Salvation at Hand: Why Ex-MP is Championing Faith-Based Land Development

Renee McKeown
6 Min
View All >
Policy

Commonwealth, Qld Agree on Games Delivery Collaboration

Lindsay Saunders
Hengyi is filing bigger apartment plans in the Melbourne beachside suburb of Sandringham
Residential

Hengyi Plots Midrise Trio After Sandringham Refusal

Renee McKeown
Residential

Dasco Approved to Add 105 Homes to Epping Scheme

Patrick Lau
The tallest of the project’s five towers will now top out at 18 storeys and the percentage of affordable homes has tripl…
LATEST
Policy

Commonwealth, Qld Agree on Games Delivery Collaboration

Lindsay Saunders
2 Min
Hengyi is filing bigger apartment plans in the Melbourne beachside suburb of Sandringham
Residential

Hengyi Plots Midrise Trio After Sandringham Refusal

Renee McKeown
2 Min
Residential

Dasco Approved to Add 105 Homes to Epping Scheme

Patrick Lau
2 Min
Development

Why Social Performance is Property’s Next Big Edge

Partner Content
5 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/credit-suisse-offloads-50-stake-in-sydney-building-