PRACTICAL completion has been reached on Nuveen Real Estate’s prime office development, SubStation No. 164, the seed asset of the the investment managers’ Asia Pacific Cities strategy.
SubStation No. 164 sits in the centre of the Sydney CBD, at 183-185 Clarence Street, offering 7,867sqm of A grade commercial space across 12 floors, 440sqm of retail space and hotel style end-of-trip facilities.
“Practical completion of 183-185 Clarence Street marks a shift in the needs and demands of Sydney CBD tenants,” said Rick Marston, head of Australian transactions at Nuveen.
The development, which was delivered by Built, includes 7 levels of heritage space and a further 7 levels of new high-rise space and is aiming for a 5-Star Green Star and 5-Star NABERS rating.
“We are proud to have been able to provide a property that also fits with Nuveen’s focus on ESG, and creates a space that contributes economically, environmentally and socially to its surrounding neighbourhood,” said Marston.
Built headed up both the restoration and refurbishment of the two heritage buildings, as well as the glass sculptural extension above.
“We’re exceptionally proud to have delivered SubStation No.164 which is unlike any other development in Sydney right now,” said Brett Mason, CEO and managing director of Built.
“Where many developers had previously failed over two decades, we have been able to envision and unlock the incredible potential of these heritage buildings to leave a positive legacy on the city and we’ve found great alignment with Nuveen who, from the early stages, shared our vision for this development.”
183-185 Clarence Street was acquired by Nuveen Real Estate in 2018, as the seed asset of the investment managers’ Asia Pacific Cities strategy, aimed at institutional investors in 17 cities across the Asia Pacific which were identified for demographic and structural growth.
“We have a number of European investors who have committed capital to the Asia Pacific Cities strategy, and more recently we have seen greater interest from Asia Pacific clients who are looking for core assets with long-term prospects in the region,” said Louise Kavanagh, chief investment officer and head of funds management of Nuveen, Asia Pacific.
The strategy, which aimed to create a foundational portfolio of diversified private real estate in these cities, has raised more than $700 million for investors.
“Completing a prime office building in Sydney amid a global pandemic has been a significant achievement for all concerned,” said Marston on the completion of SubStation No. 164.
