This article is from the Australian Property Journal archive
COUNTER cyclical Perth-based syndicator Property Bank Australia and financier Security Capital Corporation are taking advantage conditions on the east coast by offloading a boutique office in North Sydney, which is tipped to fetch around $50 million.
Knight Frank’s Tyler Talbot and Dominic Ong and CI Australia’s Bevan Kenny and Chris Veitch have been appointed to sell the 75 Miller St property.
Set on a 777 sqm of land, Talbot said the 4,930 sqm property is perfectly positioned to capture future growth in the sought after North Sydney market.
The joint venture partners are taking advantage of demand, having already offloaded two assets in North Sydney over the past three months, including 8 West St for $60 million and 116 Miller St for $135 million.
They acquired 75 Miller St in 2011 for $22.25 million.
“We expect will appeal to both local and offshore buyers.
“We are seeing a great deal of growth in North Sydney’s secondary office space, with further stock withdrawals tightening supply and dramatically increasing net effective rental returns for investors. Knight Frank research has forecast an average of 10.36% net effective rental growth per annum over the next three years for North Sydney B-grade stock,” Talbot said.
Kenny said the asset is almost fully leased providing excellent opportunity to capture substantial rental growth via new leases over the coming years.
“Stock withdrawals are creating a reduction of B-grade supply which is expected to maintain strong rental growth for this asset.
“The future re-positioning of 73 Miller St adjacent will activate the ground plane in addition to the new retail at 50 Miller St. Both these developments will increase the rents of the office and retail accommodation and enhance the appeal of the location.” Kenny said.
Australian Property Journal
