This article is from the Australian Property Journal archive
THE Investa Commercial Property Fund (ICPF) has exercised its pre-emptive right to buyout Dexus Property Group's stake in 201 Kent St Sydney for $173 million.
The pre-emptive rights were triggered by the CPA takeover. All remaining properties from the CPA portfolio have been integrated into Dexus.
Following the acquisition, ICPF will own 100% of the property. 201 Kent St is an A grade office building located in the growing western corridor of Sydney. The property comprises 40,091 sqm of net lettable area and includes the 35-level Aon Tower and the heritage listed Grafton Bond building.
ICPF fund manager Peter Menegazzo said the property has a strong return profile and increases ICPF’s exposure to the Sydney CBD.
He added that the western corridor of Sydney’s CBD is undergoing a transformation, following relocation of key corporate tenants to new buildings in the area and the Barangaroo urban renewal project.
“We anticipate this will deliver improvements in local amenities and rental upside over the longer term for the asset,” he said.
Menegazzo said the acquisition delivers on the fund’s strategy of owning the highest quality, prime office buildings within Australia’s major CBD office markets and follow an active year for the fund, which acquired more than $313 million in assets last financial year and was oversubscribed in its recent $350 million capital raising.
“We are very pleased to have secured a further interest in this asset which is accretive to fund yield.
“Its expiry profile will allow us to leverage the anticipated improvement in the Sydney leasing market over the next few years, with signs already emerging of improvements in net absorption and rent levels,” he concluded.
Property Review
