This article is from the Australian Property Journal archive
A JOINT syndicate between Sumner Capital and Trilogy Funds have won out from more than 400 interested parties to acquire a Pymble office building for $17.3 million, in the suburb’s largest office investment deal since 2016.
The sale of the 2,626 sqm building at 3 Bridge Street represented a 6% yield. It is currently tenanted by long term occupier UGL, which entered into a new five year lease with a five year option in July last year.
CI’s Chris Veitch and Nick Lowry managed the sale in conjunction with CBRE’s Nicholas Heaton, Toby Silk and Arron Arias, receiving 15 offers.
“Suburban office assets with growth and value-add potential remain a highly sought-after investment stream for local, interstate and international buyers,” Veitch said.
“The number of under bidders on this campaign and active parties seeking comparable assets across the North Shore, is continuing to drive market conditions in favour of vendors.
“This a trend we expect to continue across 2021 as buyers seek to invest unsatisfied capital.”
The building is located within a 10-minute walk from Pymble railway station and retail amenities, and is easily accessible to the major arterial intersection of Ryde Road, Pacific Highway and Lane Cove Road, allowing direct access to the Northern Beaches, Hornsby, Chatswood and North Ryde. It is on 3,000 sqm of land with future development potential allowing for a 3.5:1 floor-space ratio and 32.5 metre height limit under the current B7 Business Park zoning.
Lowry said there is increasing activity and confidence among investors and developers across the North Shore and broader Sydney market following the challenges of COVID-19.
Sumner Capital offloaded the historic Accountants House in The Rocks two years ago to Hong Kong-based Terraform Capital for $21.05 million.
Trilogy Funds acquired a 1.64 hectare industrial landholding in Carrara early last year, and closed 2020 co-founding a first mortgage constructions loan facility with Sterling Global for a Melbourne residential subdivision.
