Lendlease could extend its grip over a key block in Sydney’s central business district as Centuria readies to put a major tower in Spring Street on the market with hopes of more than $200 million.
The unlisted funds arm of Centuria Capital, run by Jason Huljich, has called for submissions from real estate agencies as it seeks to offload the building at 10 Spring Street. Centuria launched a syndicate to hold the tower that it bought from John Swire & Sons in 2013 for $91.64m. Asset values and office rentals in the city have since surged.
Centuria fully leased the B-grade building after refurbishing the foyer and interconnecting retail arcade. The building is attractive as it sits in the city’s financial precinct and fronts both Spring and O’Connell streets. While the tower would appeal to stand-alone buyers, Lendlease is most likely to chase the asset.
The unlisted Australian Prime Property Fund Commercial and Abu Dhabi Investment Authority earlier this year bought the neighbouring 8 Spring Street from funds house Heathley for about $69m. The pair also co-own the neighbouring 1 O’Connell Street and buying again would expand their footprint on the key Sydney block while also giving them control of a well-leased building that spans close to 14,000sq m.
If Lendlease snared the tower it would only have to buy one more building from a Malaysian investor to take full control of the block.
It could then fully benefit from the city’s draft planning policy allowing for height of up to 300m.