NOMINATIONS CLOSE SEPTEMBER 12 RECOGNISING THE INDIVIDUALS BEHIND THE PROJECTS
NOMINATIONS CLOSING SEPTEMBER 12 URBAN LEADER AWARDS
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Property fund manager Arcadia has continued the run on prime Sydney office towers with the acquisition of a fifty per cent share in World Square’s 52 Goulburn Avenue for $176 million.
Occupied by the Australian Taxation Office, Arcadia’s stake was taken from Credit Suisse’s asset management arm who put it up for sale in January. The financier had bought its half share from developer Brookfield in 2007 when the building was completed, which valued the building at $235 million - well below the latest value of $352 million.
The deal was transacted by JLL and Knight Frank at a passing yield of 4.76 per cent. Brookfield still owns the remaining 50 per cent.
The 12-level office building is currently leased to the ATO until 2022 with a 4.6 -year WALE and fixed annual increases of 3.5 per cent. It comprises 23,100 square metres of office accommodation and 210 car parking spaces.
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It forms part of the broader World Square precinct which according to the sales agents is one of Australia’s best performing CBD shopping centres.
Arcadia manages more than $1.5 billion in real estate assets on behalf of its institutional funds and mandates. It now has a significant presence in the precinct also owning a half interest in the Ernst & Young Centre and 50 Goulburn Street in the World Square office tower, alongside Brookfield, as well as a half stake in the retail complex, beside ISPT.
Related reading: Lendlease Submits Official Proposal for 55-Storey Office Tower in Circular Quay
Sydney’s inner-city area has seen many recent transactions and development starts with around $4.8 billion worth of projects underway and $3.1 billion of approved works still to commence.
The Mah family have recently been revealed as the $90.8 million purchasers of 299 Elizabeth Street, an office tower which earned the vendors a nice profit of $45 million.
“Sydney CBD is evolving with an unprecedented amount of infrastructure, large scale developments, and emerging precincts proposed or underway,” Knight Frank head of Asian markets in NSW Dominic Ong said.
