The A-Grade commercial property was bought by listed Japanese real estate firm Daibiru Corporation in its first foray into the Australian property market.
John Holland CEO Joe Barr said the forward sale reflected the premium offering and the strong interest in commercial developments near transport nodes.
“We are now a fully integrated property and infrastructure company, and we are proud to be developing and building our first premium workspace in the heart of the Sydney CBD, designed and built to accommodate the people who will use it every day,” Mr Barr said.
Executive General Manager Development and Investments, Tom Roche, said this proven development model will mean the company can recycle capital to invest in future opportunities.
“We are staying on as the development manager and the builder, and we are excited to work with Daibiru and TH Real Estate to complete what will become one of Sydney’s best office spaces,” Mr Roche said.
“We have already received a strong response and leasing will formally launch in September. The boutique building will provide customers highly sought-after, column-free 500sqm floor plates, with premium end-of-trip facilities and finishes.”
Minor changes to original designs include the addition of a mezzanine level at the top of the building, giving customers greater natural light and amenity with the introduction of an outdoor terrace.
The building will also offer retail opportunities at its ground, first and subterranean levels.
Demolition has commenced and construction on the new tower will begin in the first quarter of 2019. It is due for completion in 2020.
Colliers International Sydney capital markets team brokered the deal. National Director Adam Woodward said the sale showed the strong demand for Sydney CBD office developments.
“The sale to another new global investor confirms Sydney is still ranked atop global investment destinations,” Mr Woodward said.
Daibiru has appointed TH Real Estate to provide investment management and development oversight for the project.
TH Real Estate Executive Director and Head of Australia Nick Evans said: “We are delighted to be working with John Holland and new partner Daibiru – two highly credible firms, in developing this flagship Grade-A commercial office building.”