Singapore-based Suntec REIT closed a $297 million deal for a property in Pyrmont, planning to transform it into an A-grade, nine-storey, campus style commercial office building with three basement levels. 21 Harris Street, which is located at Sydney’s inner-city fringe two kilometers away from the CBD, is currently under development by Sydney developer Milligan Group.
$119 million of the total deal amount is used for the purchase of the property while $178 will also be used for development services. Milligan Group provided rent guarantee on unlet office space for three years following practical completion.
The estimated average lease expiry of the Bates-Smart designed property lasts for 10.2 years with and annual rental escalation of at least 3 to 4 per cent. The purchase is expected to be completed in the first quarter of 2020.
The property, having a total of 18,888 sq m net leasable area, benefits from its location attracting major tenants. Publicis Groupe, a global communications and marketing company, will set their Sydney headquarters in the building once ready for occupation.
Image and article source: https://theurbandeveloper.com/articles/developer-sells-pyrmont-property-under-construction-for-297m
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