This article is from the Australian Property Journal archive
FUND manager CorVal is looking to turn a tidy profit on the sale of its 67 Albert Avenue office asset in Sydney’s Chatswood, hoping to fetch around $150 million.
The A-grade 14,800 sqm tower has 1,100 sqm floor plates and parking for 193 vehicles, and is on a site that has development approval for a boutique office building of around 7,100 sqm on surplus land.
CorVal paid around $85 million for the property just four years ago from Eureka Funds Management’s Core Property Fund 3, and has held it in the sold-asset Value Active Fund.
Over summer, Corval offloaded the A-grade six-level, twin-tower complex at 75 George Street in Parramatta to Mirvac for $86.3 million, reflecting a $53.75 million capital in just five years of ownership. The fully leased asset is anchored by St George bank and sold with a 3.13-year weighted average lease expiry.
Cushman & Wakefield’s Steven Kearney and Mark Hansen, and Colliers’ Adam Woodward and Jon Chomley are marketing 67 Albert Avenue via expressions of interest closing September 26.
It is being offered with 97% occupancy, with tenants comprising Westpac, GPNSW and Du Pont Australia, and a WALE of three years.
Chomley added that the Chatswood CBD had witnessed ongoing leasing demand from blue chip corporates and state and federal government due to the substantial levels of infrastructure investment.
“This has resulted in strong rental growth and reducing incentives, with vacancy rates for A-grade office space currently at just over 6%.
“Sydney’s metro office markets continue to generate strong interest from a wide range of investors from smaller unlisted funds to large institutional investors, which are likely to express strong interest in 67 Albert Ave.”
The property is adjacent to the Chatswood Transport Interchange and Westfield Chatswood.
Last month, CorVal tapped investors for $23.3 million for its $36 million acquisition of the new 17-level office tower at 26 Flinders Street in Adelaide, and at the same time established a new unlisted fund for the former Australian Taxation Office building at 40 Cameron Avenue in Canberra’s Belconnen, which it agreed to pay $24 million to Stockland.
The offering comes as investors continue to flock to the suburban office markets.
In the past week GPT acquired Eclipse Tower in Parramatta from Rest Industry Super for $277.6 million.
At the same time, GDI Property Group sold an Ashfield office building for $46 million after acquiring it for $35 million less than two years ago.
Last month toy manufacturer billionaire Francis Choi settled on the acquisition of North Sydney’s Northpoint Tower for around $400 million.
Meanwhile in the CBD, Japan’s Daibiru Corporation has paid around $240 million for John Holland’s 275 George Street A-grade office tower development in Sydney’s CBD.
Australian Property Journal
