Sumner Capital cashes in with North Sydney tower sale as office momentum builds

Sumner Capital and Prime Super are selling 50 Miller Street.

The trading of Sydney offices is picking up with more offshore and local capital buying into the leasing recovery story as the gateway city is forecast to grow substantially in coming years.

In the latest play, Singaporean group Sun Venture is targeting the purchase of the North Sydney tower, which houses the American consulate, for about $140m.

It would be Sun Venture’s first play in the local market and grows its from its home country portfolio after it bought in London.

The move continues a run of sales in which assets are trading at levels reflecting the reality of higher interest rates. But well-positioned and leased assets that have the potential to benefit from infrastructure uplift across the city remain in demand.

The North Sydney tower was put on the block by Sumner Capital, and the Singaporean group would become the area’s latest owner after recent buyers, including GPT’s funds arm, US giant LaSalle Investment Management and Singapore’s Roxy-Pacific Holdings.

CBRE’s James Parry and Kenny Duncanson and JLL’s James Barber, Luke Billiau and Simon Storry are handling sale of the complex at 50 Miller St but did not return calls.

Sumner undertook an extensive upgrade of the 10,427sq m asset, which was completed in 2019, and included more than $15m in base-building capital works. The consulate poured about $120m into fitting out its space and WeWork also invested in the building.

Overlooking Wynyard Park in Sydney’s CBD, 32 and 36 Carrington St have both been sold.

Separate buyers have bought two boutique office buildings in Carrington St that adjoin the landmark Brookfield Place in the Sydney CBD for a total of about $109m.

The larger 36 Carrington St has been picked up by the Swiss AFIAA (Foundation for International Real Estate Investments) for $70.5m and the smaller asset has gone to the local April Group for $38.5m.

The Brookfield buildings were sold via CBRE’s James Parry, Michael Andrew and Harry George, and CI’s Mike Stokes and John Bowie Wilson.

April Group owns mixed-use assets in Sydney city and fringe market and has about $500m of assets under management.

It also owns buildings in Paddington that are capitalising on the revitalisation of Oxford St.