Brookfield, CPP Investments could sell George St, Pitt St office towers
Brookfield will offer its stake in 388 George St, Sydney, for sale
The owners of two neighbouring Sydney skyscrapers are weighing up their options with Canada’s Brookfield and listed company Dexus to potentially sell office assets in the heart of the city worth more than $1.1bn.
The Canadian group has sought advice on a potential sale of its half stake in 388 George St in the Sydney CBD, with the $1bn tower likely to attract local and offshore bids as the revamped building is full.
Brookfield might be selling a half stake of its tower located on George Street, pictured here. Picture: Damian Shaw
Next door, Dexus is less advanced, but is looking at options for 175 Pitt St, which is best known for housing the flagship Sydney store of Tiffany & Co. The tower is co-owned by another Canadian group, CPP Investments, which controls a portfolio with Dexus, and it is valued at about $630m.
While the owners declined to comment as they are yet to make sale decisions, an offer of the assets early next year could spark up the market after a quiet 2023 in which few city towers sold.
Brookfield and co-owner, the Investa Gateway Office Fund, undertook a $200m redevelopment of the prominent George St building, overhauling the 1970s office tower into a state-of-the-art office tower with a prime retail pavilion.
Sitting on the corner of George and King streets, the building has 38,364sq m of offices and 2680sq m of retail space.
The main tower houses Aware Super and QBE and has been filled up as smaller tenants chase quality towers, allowing them to fill up the recently redeveloped 28-level office tower. New tenants include PVH Brands, one of the world’s largest lifestyle companies with a stable of iconic brands including Calvin Klein and Tommy Hilfiger, which leased 5000sq m from levels eight to 11 on a seven-year term.
It joined tenants including ECP Asset Management, Johnson Partners, Chapman Eastway, Drake International and The Commons.
Tiffany & Co new Sydney flagship store at 175 Pitt Street.
Other office occupiers include family-owned fashion and fragrance business Puig, with brands including Carolina Herrera, Byredo, Charlotte Tilbury and Comme des Garçons, and education company Go1.
Locali by Romeo’s runs its signature supermarket and food hall concept beneath the tower.
Luxury retailers are Cartier and Bally, with the Esca Group opening a Japanese rooftop bar and restaurant in the podium building next year, and premier watch retailer Swiss Concept to open on George St.
Next door, the A-grade 175 Pitt St fronts both Pitt and King streets and its tower has 22 levels of offices, with large floors and views to Sydney Harbour Bridge from the upper levels. Its retail redevelopment, completed in 2019, also includes Kennedys and Hublot.
A substantial building upgrade was completed in 2010, incorporating sustainable initiatives, and the tower could be further repositioned.
CPP Investments and Dexus have also offered 385 Bourke St in Melbourne to the market. Bidders have made offers for that 54,000sq m office block overlooking Bourke Street Mall. They have also put 101 George St in the western Sydney hub of Parramatta up for sale, which has also won bids.
