This article is from the Australian Property Journal archive
EG has paid $19.75 million for the Mascot Police Station, adding the south Sydney building to its ethical property fund that seeks to improve the energy efficiency and commercial returns of its assets.
Mascot Police has whole occupied the two level office building of 2,888 sqm at 965 Botany Rd in Rosebery since 2009, which has sold with a weighted average lease expiry of 5.9 years.
The asset will be placed in the High Income Sustainable Office Trust (HISOT). EG said it was targeted for its opportunity to reduce energy consumption and carbon emissions and improve the NABERS energy rating.
“EG is pleased to transact on this asset despite the uncertain times we face as a nation,” Michael Noblet, fund manager, EG said.
“The asset has a long lease to the government, providing income security during this period of volatility. EG will focus on cost-effective capital works and operational improvements to reduce carbon emissions.”
The Clean Energy Finance Corporation made an investment of $125 million to the trust in 2015, and allocated a further $25 million last year along with a $50 million commitment from Tasplan Superannuation Fund. HISOT has also attracted backing from Uniting Financial Services.
HISOT’s first asset was East Block in Canberra’s Parliamentary Triangle, picked up for $15.4 million from the federal government, and followed soon after by the acquisition of the Australian Medical Association’s building in Barton for $15.6 million.
EG completed its $61.8 million of the Circle on Cavill retail centre on the Gold Coast Macau gaming mogul Loi Keong Kuong in recent weeks. The fund manager acquired the site in 2011 and recently undertook extensive capital works and a leasing program.
