This article is from the Australian Property Journal archive
DEXUS Property Group has acquired the 1.9-hectare mixed-use development The Mill in Sydney’s inner-eastern suburb of Alexandria from Goldman Sachs for $110.2 million.
Goldman Sachs took control of the asset after acquiring the $1.6 billion distress loan package from Suncorp in 2013.
The site is located on the corner of Bourke Road and Huntley Street and comprises a mix of 10 modern and refurbished historic buildings totalling 17,579sqm of warehouse style office, retail spaces and car parking.
Tenants include BlueScope Steel, Genesis HealthCare, Seafolly, Bendon, Under Armour, Mavi, carsales.com.au and popular café, bar and restaurant The Grounds of Alexandria, which attract between 15,000 and 20,000 visitors each week.
The property was sold 83% leased and with a weighted average lease expiry of circa five years.
Scott Gray-Spencer and Brendan Shipp of CBRE negotiated the transaction on behalf PPB Advisory, which is advising Goldman Sachs.
Settlement is expected in January.
Ross Du Vernet, Dexus chief investment officer said The Mill provides the group with a significant landholding in a prime South Sydney location where tenant demand is expected to remain strong.
“The property is well positioned to benefit from a combination of our active management of underutilised space and we expect to achieve rental growth, driven by withdrawals of nearby existing traditional office and warehouse properties,” he said.
Australian Property Journal
