This article is from the Australian Property Journal archive
HONG Kong-based investor, Euro Properties, has launched into Australia with the $147.5 million acquisition of Channel Nine’s Sydney studios in Willoughby.
Nine Entertainment signed a put and call option agreement with Euro Properties and the deal is subject to FIRB approval and other standard completion requirements.
Nine chief operating officer Simon Kelly said net cash proceeds after tax are expected to be around $135m, with pre-tax annual lease costs of approximately $10m from completion.
“The move from the birthplace of Australian Free-to-Air television is a significant milestone for Nine. Our relocation to state of the art facilities will enable us to further optimise our operations as we evolve our business model in a digital world.
“The sale will complete in two years after which Nine will be able to remain on the site, under a lease, for up to a further three years, following which it will re-locate to new premises.
“This sale frees up surplus capital which provides us with significant flexibility to pursue strategic opportunities whilst underpinning our program of increased shareholder returns through our previously announced on-market share buyback and enhanced dividend payout policy,” Kelly said.
Euro Properties is a boutique firm specialising in residential and mixed-use projects with over 25 years of experience globally. The company is particularly active in the United States, where it has several high-rise developments underway.
CBRE’s Matt Ramsay, Scott Gray-Spencer and Ben Wicks negotiated the sale and five-year leaseback deal via an international expressions of interest campaign.
Ramsay said CBRE has received 17 bids from a range of high profile local and international investors and developers.
“Buyers were attracted by the site’s location, the concept plan approval and the covenant Nine provides for the next five years.
“Euro fought off strong competition from local investors to secure the site in their latest foray into Australia,” Ramsay said, adding that foreign investment in the Australian property market was at all-time high, bolstered by lower $AUD.
“Sydney’s lower north shore residential market has been undersupplied for some time and this site provides a key opportunity to deliver a project of significant scale in a highly desirable location,” he continued.
The high profile 2.9ha north shore property has been home Channel Nine for over 50 years. The property has an approved concept plan for the development of up to 400 residential dwellings across five apartment buildings and two rows of terrace houses with an end value of approximately $500 million.
The concept plan approved in January was for 37,136 sqm of gross floor area; up to 35,886 sqm residential GFA and 1,050 sqm adaptive reuse of 6 Artarmon Rd.
The Sydney development sites market is roaring.
The Willoughby site sale comes hot on the heels of Cbus Property’s $260 million acquisition of the 5ha Inglis Newmarket stables at Randwick last week.
Australian Property Journal
