ISPT takes out line honours for $1b Martin Place tower

ISPT takes out line honours for $1b Martin Place tower

21 February 2020

ISPT has taken out the line honours to buy the highly-coveted $1 billion tower in Martin Place.

ISPT was the last group standing on Tuesday after a five-month bidding process for 39 Martin Place. Property heavyweights Investa and Cbus Property made it to the final stages while Dexus and Charter Hall were among those that showed early interest.

The 30,000sq m tower is one of two buildings being developed by Macquarie Group as part of the city’s over-station development for the new Martin Place Metro station.

With net average rents expected to be about $1500 a square metre — some of the highest in the Sydney CBD — the tower is likely to transact on a yield of between 4.25 per cent and 4.5 per cent – with the total price expected to push $950 million, reports The Australian Financial Review.

Macquarie won the right to build two towers at the north and south entrances of the future station after an unsolicited proposal to the NSW government in 2017. It paid $355 million for the air rights in 2018.

Architecture firm Tzannes designed the office tower while Lendlease has been appointed to build both towers and the new metro station.

The south tower will have 29 levels and is located on the site of the former Tiffany & Co flagship store.

The larger north tower will have 39 levels with 75,000sq m of office space and will be retained by Macquarie.

The competitive CBD office market is also fuelling several other over-station developments. Canada’s Oxford Properties is developing a build-to-rent project over the Pitt Street metro station while John Holland and Mirvac will build three skyscrapers and two smaller towers above the Waterloo metro station.

Over the bridge, Lendlease has won the rights to develop a 40-level office tower over another new metro station, Victoria Cross. The skyscraper will include about 58,000sq m of office and retail space.