Sydney, 23 October 2014 – The recent refurbishment of the Suncorp Place office tower at 259 George Street has seen increased international interest, with two leases recently signed to Chinese property developers.
CBRE’s Tim Molchanoff, Stuart McSorley and Jamie King negotiated the leases on behalf of the owner, Singapore-based Memocorp. The building is currently in the final stages of an extensive refurbishment.
Memocorp acquired the CBD building in late 2011 from Colonial's listed Commonwealth Property Office Fund. The Suncorp Place building upgrades and lobby redevelopment were undertaken in a drive to secure new tenants and maintain the building’s presence as one of the leading prime grade office towers in the CBD core.
The upgrades include air-conditioning chillers to improve energy efficiency and NABERS rating, domestic rooftop water tank, food court works and façade upgrades. The building’s façade window panels have been replaced to provide higher UV blockage with reduced reflectance levels.
CBRE Senior Director, Office Services, Tim Molchanoff said the building works had generated large amounts of tenant interest, for both single and multiple floors.
“Finance, recruitment and resources tenants have shown particular interest in the building, along with overseas investors. There have been very few opportunities within the sky rise over the years, and the private ownership of the building allows greater flexibility in structuring deals, which is helping to underpin tenant interest.”
These upgrades have seen property developers The Great Australian Chaozhan Investment Group lease an office suite of 500sqm on a term of six years, for $995/sqm gross rent per annum. The group is an Australian start up from mainland China, made up of property developers/investors who are keen to explore new opportunities in Australia.
“The attraction for this particular tenant were the views to the North, West and East through floor to ceiling windows, “ said Mr King.
Another group of Chinese investors, Broadstate Capital, has also leased a suite with attractive northern and western views. The 250sqm office was secured for a gross rent of $995/sqm per annum on a five year term.
“In line with the growing trend of Chinese investment in the CBD, we have seen significant interest in the building from international groups. It offers premium services at an attractive price point, with new tenants attracted to the fantastic views toward Barangaroo, lobby upgrade and the high calibre of existing building tenants, The great views and prime location of the tower were key considerations for the tenant, together with the landmark status of the building,” Mr Molchanoff said.
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