North Sydney’s 2EP building close to $120m sale
Singapore-based SC Capital is again looking to expand its local holdings, with the fund manager close to buying an office block in North Sydney for about $120 million.
The impending purchase of the building known as 2EP from US asset giant BlackRock shows the increase in values in the area.
Investors are taking a bullish view as a series of new towers get under way.
Commercial Insights: Subscribe to receive the latest news and updates
The 14-storey office building is being sold via Josh Cullen, Steve Kearney and Mark Hansen from Cushman & Wakefield and Bevan Kenny and Chris Veitch of CI Australia, but they and the parties did not comment.
BlackRock purchased the office block two years ago from Marprop Real Estate Partners for $81 million, but it has since benefited from rental increases as it sits near North Sydney’s Metro station and the Central Laneways.
It sits in the inner circle of the North Sydney CBD’s four key developments — the Lendlease tower to come above the Sydney metro, 1 Denison St, 88 Walker St and the recently completed 100 Mount St.
North Sydney has seen a wave of deals as local and global investors get set and more companies look to pre-commit. An Asian group recently picked up the nine-storey office building at 107 Mount St, paying Burcher Property about $115 million in another bullish play.
2EP sports a 157-vehicle basement car park, CBD views and mezzanine retail component, where BlackRock created an “eat street” for tenants.
Zurich’s new headquarters at 118 Mount St is also close to be trading to funds manager CBRE Global Investors.
Demolition is also now under way at 86-88 Walker St. It set to be the site of a new 48-storey office and hotel development.
This article originally appeared on www.theaustralian.com.au/property.
