Investa secures Pfizer, Arup for Barrack place

Investa secures Pfizer, Arup for Barrack place

8 December 2017

Investa Office Fund (IOF) has struck a lease deal with pharmaceutical giant Pfizer Australia, which will take up 4,640 square metres (21 per cent) at its Barrack Place development in Sydney. The deal comprises the top four floors of the 18-level building for an eight year term commencing in December 2018

It is the second major lease deal at the $130 million 151 Clarence Street development. The Pfizer deal follows the pre-commitment deal with engineering group Arup. Together, the two tenants account for 57 per cent of the 22,000 sqm tower.

Investa began demolition on the site in March last year and is now well out of the ground with the new tower, which is due to be completed in October 2018.

Click here or below to watch an overview video of the development.

Fund manager Penny Ransom said Investa had taken a “very measured approach” to leasing the development over the past 12 months, after securing Arup for 35 per cent of the space.

“We felt quite comfortable in the optionality to get that space away,” she told The Australian Financial Review. “We could be patient knowing that we weren’t trying to get away 50,000 sqm or 100,000 sqm of space.

“That’s worked in our favour, because by being able to be patient we’ve done that at a time when the market is really building momentum.

“Attracting such a high calibre tenant as Pfizer at IOF’s Barrack Place development is an outstanding result for the Fund and is testament to the quality of the building and the specialist development capability at Investa. We are also very pleased to welcome Pfizer as a valued partner to our platform.”

Melissa McGregor, Pfizer Australia’s managing director, noted the number of innovative businesses, including Atlassian and Apple, in the Barrack Place precinct.

“We are proud of our manufacturing legacy at our West Ryde site over the past 60 years,” she said. “Locating Pfizer Australia in this burgeoning business precinct – in the heart of the Sydney CBD – positions us strongly for the next 60 years.

“We will be part of the innovation and creativity that surrounds the area. In part because of the location, we will continue to attract vibrant and talented people to work at Pfizer Australia, as we have done for many years.

“As it’s a new building, we have the opportunity to design, shape and construct our internal workspace to our exacting and unique specifications. As you can appreciate, such opportunities are rare – particularly in this exciting location,” Ms McGregor said.

Pepper Property assisted Pfizer Australia. Barrack Place is being leased by Investa and Savills.

Rents in the project were likely to be more than $900/sqm but below the $1,000/sqm mark on a net basis excluding incentives.

Designed by Architectus, the 18-storey building has been awarded a six-star Green Star Office Design rating by The Green Building Council of Australia.