Global real estate heavyweight, Brookfield Property Partners, has offered a 25 per cent stake in its $1.8 billion office and retail Wynyard Station development in Sydney.
The development, which gained final approval from the NSW cabinet last year and will be the headquarters for National Australia Bank, is already in the sights of major property fund managers such as QIC Global Real Estate.
All up, a 25 per cent stake in the development could fetch as much as $450 million to $500 million, but there was likely to be appetite for a 50 per cent stake, which could value the deal at $1 billion.
A Brookfield spokesperson confirmed a capital partner could invest alongside Brookfield.
"We see a healthy demand from investment partners across our global real estate business and often seek to bring capital partners into our various projects.
"Wynyard Place is a unique opportunity for a capital partner to invest alongside Brookfield while we continue with completing the development and managing the asset post completion".
The core of the Brookfield project will be the 27-level 59,000 square metre office tower to be known as 10 Carrington Street but will also include the restoration of historic office buildings at Shell House and 285 George Street to create another 9400 square metres of boutique office space.
The retail space, along George Street, within the station concourse, and across the Carrington Street frontage, will total 7000 square metres.
JLL's head of retail Simon Rooney, head of international sales Simon Storry, JLL's head of sales NSW Paul Noonan and head of office investments Rob Sewell are marketing the property.
JLL was unavailable for comment.
The stake in the development is the largest property asset to come to the market in the new year. Late last year, AMP sold its headquarters overlooking Circular Quay to two unlisted AMP property funds for between $430 million and $460 million.
About 46 per cent of the lettable area in the development will be committed to NAB for its 2020 Sydney CBD office. The bank has agreed to a 12-year lease of 31,000 square metres from levels one to nine at 10 Carrington Street.
The state government's approval last year of the development allows for a full transformation of the precinct surrounding the run-down but heavily used Wynyard Station.
The project, designed by London-based Make Architects in collaboration with Sydney-based Architectus, will have a rare east-west pedestrian link between the top end of town around Chifley Square and Martin Place all the way through to Barangaroo.
Former NSW premier Mike Baird said last year the development of what would become Wynyard Place was an endorsement of the government's commitment to making Sydney a vibrant global city and a magnet for investment and jobs.
"The creation of over 3000 jobs during the construction phase alone builds on NSW's leadership in jobs growth and economic development," he said.
There is up to $2.7 billion of planned community and transport infrastructure investment in the surrounding precinct over the next five years.
The expression of interest campaign closes on March 15, 2017.
