CBRE Global Investors has acquired the future headquarters of Zurich Australia for $350 million.
The North Sydney building is still under construction and being developed by Zurich Insurance Group to house the headquarters of Zurich Financial Services Australia.
CBRE said the acquisition was completed via a fund-through transaction on behalf of a German real estate "Spezialfonds" and the Zurich headquarters will still occupy around 64% of the building.
Reto Buehler, Zurich's head of real estate of Australia, said: "Zurich Insurance Group has a systematic and structured investment approach. Our mission is to achieve superior risk-adjusted returns relative to the group's liabilities."
"With the sale and the leaseback of 118 Mount Street, we have achieved important milestones as this property will provide Australian business with new purpose-built headquarters and support the optimal diversification of our global real estate investment portfolio."
Buehler added that despite the sale, Australia remains a key part of Zurich's global investment strategy.
CBRE managing director, Australia and New Zealand, Chris Johnston said the North Sydney market is undergoing a revitalisation with a significant infrastructure spend.
"We are excited about how this market is evolving and the opportunity for our client to be part of that revitalisation as the owner of a development of this size, quality and location," Johnston said.
CBRE said the acquisition was enticing to the German group as they believe the location, as well as increased public transport access from the Sydney CBD, will create a solid base for attracting new tenants.
The building is expected to be completed by the fourth quarter of 2020.