One of the world’s largest real estate investment managers, Nuveen Real Estate, has just announced the practical completion of its recent purchase: SubStation No.164.
The A-grade, 8000sq m office tower pushes the boundaries of heritage redevelopment in Sydney with a seven-level sculptural glass extension to create an new silhouette on Sydney’s skyline.
The Fjmt-designed project, on Clarence Street, was developed by Built and acquired by Nuveen for $180 million in 2018 as part of the group’s first acquisition on behalf of its Asia Pacific Cities strategy.
Nuveen, which has US$134 billion in funds under management, is the investment management arm of Teachers Insurance and Annuity Association of America which currently holds a portfolio of US$1.1 trillion in assets under management.
In this TUD+ Briefing, Nuveen Real Estate head of Australian transactions Rick Marston discusses the project’s state-of-the-art amenities, Nuveen’s acquisition strategy in Australia moving forward and the biggest opportunities and risks fund managers are currently facing.
“This project was developed during the pandemic and as a result we have been able to implement Covid-19 safe measures,” Marston said.
“We are also finding the Sydney leasing market is really kicking and our 650-700sq m floor plates are in high demand with smaller tenants opting for single-floor tenancies rather than split floor.”
Nuveen’s long-term commitment to Australia is now firmly part of the firm’s strategy to expand into the growing wealth management segment to become the central investment manager with a focus on alternatives, income and ESG.
“There is a weight of money now chasing office assets and we are experiencing increased competition for new developments,” Marston said.
“Nuveen is a very large manager, but by having a boots-on-the-ground approach we can understand the market, know the right people to talk to within that market.
“That granular understanding of the Sydney premium market enables us to understand the right levers to pull in order to access those opportunities and underwrite them correctly.”