Photo: Google Sydney HQ
The GPT Group is set to ignite fierce competition among an array of investor groups with the sale of two landmark assets valued at over $450 million: the iconic headquarters of Google Australia in Sydney and Media House in Melbourne, leased to Nine. Both assets are owned by the GPT Wholesale Office Fund, which is looking to recycle capital and seeking to capitalise on early signs of renewed interest in the sector, off the back of several office transactions in the market this year.
Google Australia headquarters in Sydney, will appeal to core-plus investors while 655 Collins Street in Melbourne is expected to draw interest from value-add investors and top-tier developers. Cushman & Wakefield and CBRE have been appointed to market both assets.
workplace6, home to Google Australia’s headquarters, is a fully leased, prime commercial office asset spanning 18,196 sqm of Net Lettable Area (NLA) across a 5,694 sqm site. Built in 2008, workplace6 was the first office development in NSW to achieve a 6 Star Green Star rating for Design and As-Built, and has achieved carbon neutral status, highlighting its sustainability credentials.
Google’s investment in the precinct is evident through its recent acquisition of the neighbouring property at 42 Pirrama Road for $170 million and its $72 million refurbishment approval. The tech giant’s expansion within workplace6 to 100% occupancy, as well as other locations within the immediate precinct, further indicates its commitment to the site and the Pyrmont precinct.
655 Collins Street stands as an iconic A-grade office asset at the highly coveted and connected intersection of Collins and Spencer Streets, directly opposite Southern Cross train station and is fully leased to Nine until 2029. Constructed in 2009, the property offers 16,620 sqm of NLA and boasts a 5.5-star NABERS Energy rating, reflecting its strong sustainability credentials.
Mitch Noonan from CBRE said workplace6 is a super rare offering for the Sydney market, located in the highly sought-after Pyrmont precinct. “With the highest attainable ESG standards, absolute waterfront position and genuine campus-style offering, workplace6 provides investors long-term income security and future growth potential from one of the world’s strongest covenants.”
Nick Rathgeber from Cushman & Wakefield commented on the potential of 655 Collins Street, saying, “This asset presents a rare opportunity for repositioning or even large-scale development on the site, including the possibility of residential projects or enhancing its existing office profile. We expect interest from a range of value-add office investors and developers looking to capitalise on its prime location.”
