TH Real Estate – the property arm of US giant TIAA – has purchased Built’s Sub Station No.164 development for $180 million delivering the builder a super profit.
Majority-owned by Marco Rossi and headed by Brett Mason, the company Built purchased a disused and derelict site at 183-185 Clarence Street, Sydney, for $22.75 million from Vietnamese Vingroup in 2017.
It has now sold the property on a 5.15 per cent capitalisation rate. TH Real Estate will acquire the fjmt-designed development on a fund through basis with Built undertaking the construction of the project.
TIAA is one of the largest real estate investment managers in the world with $115 billion in assets under management.
Built will become the anchor tenant of the building pre-committing to lease four floors for its new Sydney head office to showcase the group’s experience across development, construction and managing complex heritage sites.
Mr Mason said the company was pleased to secure TH Real Estate as the development partner for the project.
“Sub Station No.164 is unlike any other development in Sydney right now in creating what we clearly see as heritage development of the future,” Mr Mason said.
“We’ve already had strong enquiry on the leasing front that clearly talks to the quality and rare opportunity presented by this development and we look forward to working closely with TH Real Estate to bring our clear vision to a reality.”
The A-grade, 7867-square-metre office tower pushes the boundaries of heritage redevelopment in Sydney with a seven-level sculptural glass extension to create an iconic new silhouette on Sydney’s skyline.
The development will also include the restoration and refurbishment of seven floors in the existing heritage Shelley Warehouse and adjoining former electrical substation, which provides the project’s namesake. The development is targeted to complete in 2020.