Global property investment manager AEW has sold an office building in Pyrmont, Sydney to Elanor Investors Group for $185 million.
The A-grade office asset was located at 19 Harris Street in Pyrmont – an inner-city suburb some two kilometres south-west of the Sydney CBD.
AEW significantly refurbished the building in 2021, including upgrades to the end of trip facilities and lobby.
The upgrades improved the building’s NABERS rating and sustainability credentials, providing a net-zero carbon footprint for the asset.
The JLL Capital Markets team represented the vendor through an off-market international expression of interest process.
The property was acquired by Elanor Investors Group via their listed fund ECF and wholesale capital partners.
Earlier this year, AEW sold the A-grade office tower at 10 Barrack Street in Sydney’s CBD to the Shayher Group for $199 million.
Recent Sydney office deals include Australian Unity Diversified Property Fund’s sale of the 20 Smith Street, Parramatta building for about $87 million last month.
In February, Link REIT entered into a $596 million deal with Oxford Properties to invest in a portfolio of five offices across Sydney and Melbourne.
The duo acquired the Investa Gateway Office (IGO) portfolio comprising the office buildings at 126 Phillip Street, 388 George Street, 151 Clarence Street and 347 Kent Street in Sydney.
Earlier this year, Allianz Real Estate and the National Pension Service of Korea (NPS) bought a 50% stake in Commonwealth Bank Place in the CBD for about $625 million, while CapitaLand Integrated Commercial Trust bought a half stake in the 101 – 103 Miller Street and Greenwood Plaza office and retail complex in North Sydney for $422 million.
Office market deals reached $3.4 billion across Australia during the first quarter of 2022, down 18% on the same period a year ago, according to Real Capital Analytics.
Over the 12 months to end-March 2022, office transactions reach $24.8 billion, up 63% year-on-year.