This article is from the Australian Property Journal archive
GERMAN investment powerhouse Real I.S. Group has acquired an office asset on Sydney’s Walsh Bay valued at $47.75 million.
The 2004-built 3,748sqm office building at 8 Windmill Street, Millers Point is leased by BG&E, Costin Roe, Pittwater Consulting and boasts modern facilities and adaptable floorplates.
For Real I.S. Australia Pty Ltd, a subsidiary of leading international real estate investment manager Real I.S. AG, the acquisition marks a strategic expansion of the group’s global portfolio and its commitment to investments in prime locations.
The asset was sold by Melbourne-based property investment manager Marks Henderson which acquired the asset over a decade ago for $28 million on a passing yield of 7.5%.
“We are thrilled to add 8 Windmill Street to our portfolio,” said George Koumoukelis, transaction manager of the Australia office at Real I.S. Group, who led the transaction.
“This acquisition aligns perfectly with our investment strategy of securing high-quality properties in dynamic urban centers. The Walsh Bay precinct of the Sydney CBD is a vibrant and rapidly growing market, and we believe this property will provide significant value to our investors.”
The office sits within close proximity of major cultural landmarks in the Walsh Bay/The Rocks precinct and is also set to significantly benefit from the new Barangaroo Metro link.
“This investment underscores our confidence in the long-term potential of Sydney’s commercial real estate market,” said Désirée Bühler, managing director of Real I.S. Australia Pty Ltd.
“We are particularly proud of the outstanding work done by our Australian team, whose local expertise and strategic vision were crucial to the success of this acquisition. We look forward to contributing to the city’s vibrant business landscape and providing high-quality office spaces that support the growth and success of our tenants.”
Photo: AIRVIEW GROUP
The acquisition was facilitated by K&L Gates for legal advisory, CBRE for technical due diligence and PwC for tax due diligence.
Just this week in the Sydney office market, an owner-occupier purchased up adjoining two-level office buildings in Bankstown for $26.45 million , with one of the deals setting a new record floor rate for the suburb.
