Stockland, a diversified Australian property group, Australian Stock Exchange listed company, has agreed to acquire two office buildings in North Sydney, adjacent to its existing office building at 110 Walker Street, for a combined price of A$121 million.
”The acquisitions of 118 Walker Street and 122 Walker Street will more than double Stockland’s existing Walker Street landholding, creating an amalgamated landholding of almost 2,300 square metres within the prime North Sydney CBD, in close proximity to the future Victoria Cross Metro Station,” said Stockland in a press release.
“We’re delighted to confirm these acquisitions in the heart of the North Sydney business district, which continues to strengthen and enjoys strong institutional interest.This transaction aligns with our broader strategy to up-weight our workplace portfolio and increase our development pipeline, particularly through Sydney and Melbourne opportunities that enhance long-term income and valuation resilience,” said Mark Steinert, Stockland Managing Director and CEO.
“These acquisitions will increase our exposure to the strong office market, with a view to unlocking additional future development potential for new office and street level retail,” added Mark Steinert.
”We expect tenant demand for new, contemporary workspaces with large floorplates to continue to increase as North Sydney grows and transforms.”
“Demand and supply fundamentals for workplace assets along the east coast remain strong. North Sydney is undergoing a significant transformation, with infrastructure investment including the new Victoria Cross Metro Station development driving increased tenant demand for the precinct,” said Louise Mason, Stockland Group Executive and CEO Commercial Property.
“We also expect tenant demand for new, contemporary workspaces with large floorplates to continue to increase as North Sydney grows and transforms,” she added.
The acquisition of 118 Walker Street completed today and the acquisition of 122 Walker Street is expected to be complete in July 2020.
