Investa Office ("Investa") has secured commitments over 7,600 square metres of office space at 135 King Street, Sydney since acquiring the asset in January this year, reducing office vacancy at the building from 29% at acquisition to zero.
The space was secured by nine different tenants from a range of industries including IT, real estate, healthcare and recruitment, with tenancies from 154 square metres up to 3,626 square metres and initial terms of up to nine years, including a number of expansions by existing tenants.
Situated in a prime location, adjacent to the Pitt Street Mall shopping precinct and extensive transport and entertainment amenities, the 29-level building jointly owned by Investa Commercial Property Fund (ICPF) and Stockland, comprises 31,030m2 of net lettable area, with 27,100m² of office accommodation and 3,930m² of retail, known as ‘Glasshouse’.
James Freeman, General Manager, Sydney CBD Portfolio said: “Tenants have been attracted to the high quality refurbished floors and the building’s central CBD location. Particularly high demand was received for levels 19-20, which provided contiguous space and inter-tenancy stairs, enabling the tenant to optimally integrate business functions and people across the two levels.
To secure these commitments it was important we adopted a flexible approach and remained cognisant of each of the tenant’s unique requirements and how they want to use the space. The fact that many were able to occupy immediately as the space is fully refurbished or has good quality fit-outs already in place, was a key advantage.”
UXC Limited, Australia’s largest locally owned IT services company, secured 3,625 square metres across levels 19-21. This will enable them to consolidate seven different business units from four existing sites, into one central CBD location for an initial term of 7 years.
Paul Timmins, Chief Operating Officer, UXC commented: “135 King Street provided us with the right mix of quality accommodation and operational efficiency we sought in a building. Expertly advised by Cushman & Wakefield’s Michael Kearins, we have secured a space that best suits our business. We are looking forward to the ongoing benefits that 135 King Street will deliver for UXC, our staff and customers.”
In September, Stockland announced that international fashion brand H & M will open its flagship Sydney CBD store within Glasshouse, which will undergo a $30 million refurbishment.
Peter Menegazzo, Fund Manager, ICPF said: “The leasing outcomes have collectively delivered an outstanding result for the investment. Importantly, the building is a read through into the positive conditions unfolding across the Sydney office market. That is, vacancy in quality buildings is dissipating quickly as the market continues its transition into a favourable leasing environment.
It was also pleasing to see some tenants expanding their footprint and exercising expansion rights ahead of new tenant interest in the space.“
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