This article is from the Australian Property Journal archive
DEUTSCHE Bank’s property investment arm, RREEF Real Estate, has bought the ING Centre from Eureka Core Property Fund 1 for $84 million.
Located at 140 Sussex St in Sydney CBD’s western corridor, the 14 level building comprises 11,742 sqm of office space, a 698 restaurant, an adjoining three level historical property leased to Kingsleys Steakhouse and 60 spaces car park.
The property is 100% leased with a 5.6 year weighted average lease expiry and 95% of the income is secured to ING Australia until May 2017.
Completed in 1991, the property underwent a major refurbishment in 2007-2008 and currently has a 3.5 star NABERS Energy Rating. Subject to the relevant planning approvals, there is potential to utilise surplus FSR to add up to 3,000 sqm of commercial space and 4,000 sqm for residential development.
The property was sold by CBRE.
This is the second Australian acquisition by RREEF Real Estate after it split up with DB RREEF Trust in February 2008, now trading as Dexus Property Group, after it bought out the bank’s 50% interest in the manager, DB RREEF Funds Management Ltd.
Last year, RREEF Real Estate bought 737 Bourke St in Melbourne’s Docklands for $113 million.
And RREEF Real Estate is expected make back-to-back purchases in Sydney shortly as it is currently conducting due diligence to buy Sydney’s Australian Stock Exchange Building at 20 Bridge St for $190 million.
RREEF Real Estate’s Asia Pacific head Niel Thassim told the Asset that the purchase of the ING Centre is part of the group’s transaction involving cross-border client capital, or in other words, on behalf of an institutional client.
The $84 million paid is windfall for Eureka Funds Management, which put the building on the market in June this year with a price tag of $80 million after buying the property in 2005 for just under $60 million.
Eureka FM has been an active commercial property player in the Sydney CBD this year. In June it sold 10 Bridge St to a private investor from Switzerland for $60 million and in February Eureka FM bought 55 Clarence St for $83.2 million.
Australian Property Journal
