Pyrmont Office building sold for $143 million

An A-grade Pyrmont office building has sold for $143 million to AEW.

JLL and Colliers International managed the deal for 19 Harris Street on behalf of a private client of UBS Asset Management, AEW who purchased the property on behalf of its Value Investors Asia fund series.

An international expressions of interest campaign was launched in July 2018 for the seven story building, which garnered interest from local and offshore investors.

“Properties such as 19 Harris will benefit from significant rental growth in this sub-market as leases reach their expiry,”  JLL's James Aroney said.

“The high calibre of tenants, the quality of the asset and the vibrant city fringe location made it an attractive investment opportunity.”

 The building is set to benefit from the redevelopment of the Bays Market District, less than 1km away in Blackwattle Bay, which will add to the area’s retail and social amenity.

Thomson Reuters is the anchor tenant of 19 Harris Street, and L’Oreal Australia is also among the 12 occupants of the fully leased asset.

The building has a net lettable area of 12,568 sqm and campus-style flexible floor plates of around 2000 sqm.

 The deal represents a sale rate per square metre of $11,378 and a passing yield of 4.87 per cent. The weighted average lease expiry (WALE) is five years.