This article is from the Australian Property Journal archive
CHALLENGER Diversified Property Group has added the first car park asset to its portfolio.
CDI has signed a 25 year lease deal with the Royal Botanic Gardens Trust, to manage the Domain car park in Sydney’s CBD.
The Domain car park is a three-level 1,144 bay car park located in close proximity to Sydney’s midcity CBD, Royal Botanic Gardens and Art Gallery of NSW. The car park has been operated by the Sydney City Council for the past 50 years and is one of the largest car parks in Sydney.
From May 01, CDI will lease as well as undertake a $8 million upgrade of the Domain car park site and integrated moving walkway.
CDI’s fund manager Trevor Hardie said the Domain car park is a significant asset and will be held within CDI’s active trust.
“The lease with BGT was secured without upfront capital. The lease provides a new income stream for CDI, together with an opportunity to increase the operating performance of the Domain car park through additional marketing, improved management and upgraded facilities,” he added.
CDI has appointed InterPark Australia Pty Ltd (InterPark) to manage and operate the Domain car park.
The operation of the car park is forecast to generate a yield equivalent to 15% on upgrade works of $8 million for the 2009 financial year.
The upgrade works will be fully debt funded at a forecast all-in rate of 8.5%. Post completion of the upgrade works gearing is expected to be around 33%. No material impact is anticipated in the 2008 financial year.
Australian Property Journal
