GDI Property Group Sells Sydney CBD Asset for $252 million

ASX listed property owner and fund manager GDI Property Group has exchanged contracts to sell 66 Goulburn Street, Sydney, for $252 million.

After selling costs and settlement adjustments, the sale is expected to net GDI Property Group approximately $228 million.

GDI Property Group acquired 66 Goulburn Street, Sydney, in July 2014, for $136 million. At the time the 23,000 sq m property had over 6,000 sq m of vacancy and a number of August 2016 expiries, the largest of which was a single 10,432 sq m tenant that subsequently vacated.

Since that time GDI Property Group has leased, renewed or agreed to lease all of the Property’s net lettable area.

“When we purchased 66 Goulburn Street, Sydney, in July 2014, we anticipated a pick up in leasing demand in the Sydney CBD and we wanted a property that could attract strong tenant demand. 66 Goulburn Street has four sides of natural light, easily divisible floor plates and we were able to purchase it for well below replacement cost.

"In addition, it had immediate vacancy and an expiry profile that enabled us to capitalise on what we thought would be an improving Sydney CBD leasing market. Since then we’ve leased or agreed to lease 100% of the property’s net lettable area and increased its weighted average lease expiry profile to over 5 years” said Steve Gillard, Managing Director of GDI Property Group.

GDI Property Group is a fully integrated, internally managed property and funds management group with capabilities in ownership, management, refurbishment, leasing and syndication of properties.

Although the buyer is yet to be announced it is speculated that Singapore-based real estate firm Ascendas-Singbridge Group has exchanged contracts with to purchase the site.

Settlement of the sale is expected to occur on 19 October 2017.