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Overseas investors vying for Sydney’s Tech Central

Overseas investors are among the front runners vying for a slice of Sydney’s new big-ticket technology precincts.

According to Real Commercial, South Korea’s National Pension Service and Singapore’s GIC, are looking at taking a 35 per cent stake in the $1.8 billion Atlassian headquarters being built in Sydney.

The revolutionary timber tower is being built as the centrepiece of the Tech Central precinct at the gateway to the Central Station, which is also in line for a broader overhaul.

Private construction group Built, in a joint venture with Japan’s Obayashi Corporation, was last month appointed by Dexus to construct the software giant’s headquarters.

Planum Partners facilitated the transaction between Dexus and ­Atlassian and now the project, at 8-10 Lee St, is going into its next phase in which it will look to attract global ­talent, research and investment to Sydney.

The new hybrid timber office tower will have about 75,000sq m of gross floor area with retail amenities and YHA accommodation at its base, along with public spaces around Central Station.

It is using a striking mass timber design, with a glass and steel exoskeleton, that has an electricity-generating facade system with self-shade capabilities to reduce direct heat gain.

The interest in the Atlassian tower could trade for around the four per cent yield mark due to its unique nature and scale.

The sale of big office buildings slowed as bond rates were rising and people embraced the work-from-home lifestyle.

But new buildings are coming up for sale and technology tenants are being chased by developers and ­investors.

The tech precinct at Central is developing rapidly, with Dexus and Frasers also chasing tenants for the next leg of the multi-billion dollar technology area.

The pair are planning the $3 billion Central Place Sydney complex comprising two tall towers, and a 10-storey connecting building, with the property already garnering strong interest from companies in the sector.

The new complex sits beside the planned Atlassian headquarters, and another $1 billion building with offices and a hotel to come from developer Toga.

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Rowan Crosby

Rowan Crosby is a senior journalist at Elite Agent specialising in finance and real estate.