This article is from the Australian Property Journal archive
SHORTLY after selling off an Elizabeth Street building in Sydney’s CBD for a tidy profit, private group Markham has paid $90.5 million for the boutique office complex at Walsh Bay’s Pier 8 and 9.
The A-grade Hickson Road heritage property of 8,522 sqm was originally constructed in 1910 as a commercial wharf and was rebuilt in 2001. It has a passing net income of $5.94 million per annum from seven tenants, including anchors Hassell and Clemenger.
Its weighted average lease expiry is 5.6 years and the deal was struck at a passing yield of 6.6% yield by Colliers International on behalf of local property investment manager Sumner Capital. The deal includes lots 1 and 2 of three, on a 99-year strata leasehold with 82 years remaining.
Last month, Markham divested its 21-storey, 15,017 sqm 1992 building at 179 Elizabeth Street, opposite Hyde Park, for $265 million – little more than two years after paying $148.8 million for the asset.
The purchaser was a private company linked with gambling identity Loi Keong Kuong, owner of Macau’s Rio Casino, with the sale struck at a of 5.17% passing yield.
Australian Property Journal
