Nuveen Real Estate announces practical completion of 183-185 Clarence Street, Sydney

• Historical space centrally located in Sydney’s CBD precinct
• Delivered by recognized local development & construction group, Built
• Strong interest in Nuveen’s Asia Pacific Cities strategy with recent capital raise from Australian institutional investor Perpetual

Nuveen Real Estate, one of the world’s largest real estate investment managers, today announces the practical completion of Sydney’s latest prime office buildings, SubStation No.164 at 183-185 Clarence Street, on behalf of its Asia Pacific Cities strategy.

Centrally positioned within the CBD, 183-185 Clarence Street is a heritage office property which provides c.7,900 sq m (c.85,000 sq ft) of commercial space across 12 floors. The building is designed to deliver minimum Grade-A as per the Property Council of Australia (PCA) Office Benchmarks criteria and is aiming for 5-Star Green Star and 5-Star NABERS ratings.

Rick Marston, Head of Australian Transactions for Nuveen Real Estate, said: “Practical completion of 183-185 Clarence Street marks a shift in the needs and demands of Sydney CBD tenants. 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. In addition, completing a prime office building in Sydney amid a global pandemic has been a significant achievement for all concerned.”

The asset was conceived and developed by one of Australia’s largest construction and development groups, Built, who also led the substantial restoration and refurbishment of the two historic buildings that anchor the space with a modern sculptural glass extension above.

Built Managing Director Brett Mason said: “We’re exceptionally proud to have delivered SubStation No.164 which is unlike any other development in Sydney right now. 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.”

“It is fitting that it will be our new national head office as an embodiment of our capability in complex projects and commitment to developing unique properties that enrich city skylines by bringing together past, present and future design.”

Acquired by Nuveen Real Estate in 2018, 183-185 Clarence Street was the seed asset of Nuveen’s Asia Pacific Cities strategy. The investment strategy is aimed at institutional investors and focuses on 17 principal and progressive cities across Asia Pacific that are best positioned for demographic and structural growth.

Since then, the strategy, which is part of Nuveen Real Estate’s global resilient series, has acquired a number of assets across the region, including a logistics asset in Greater Tokyo, a portfolio of multifamily properties in Japan and two logistics assets in South Korea.

Nuveen also today confirmed that institutional investment firm Perpetual, based in Australia, has invested in the strategy. The move comes as investment appetite in Asia Pacific strategies from Australian investors continues to gain pace.

Louise Kavanagh, Chief Investment Officer, Head of Funds Management, Asia Pacific, added: “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. We are pleased to have welcomed Perpetual as the latest investor in the strategy, which highlights the increasing desire from Australian investors to diversify into offshore investment strategies and high-quality investment opportunities across the region.”

The strategy has raised over $700 million from investors to date.

“Since launching the strategy, we have sought to build a foundational portfolio of diversified private real estate across resilient cities and sectors in Asia Pacific and we will continue to seek opportunities in resilient cities that offer durable income and long-term growth potential,” Ms Kavanagh said.