This article is from the Australian Property Journal archive
SENTINEL Property Group has turned a quick profit on a Port Macquarie office building leased to Essential Energy, which it overhauled to A grade quality during its three years of ownership.
The sale represents an 84% increase on its purchase price of $20.6 million early in February of 2017.
Essential Energy, a New South Wales government funded corporation that builds, operates and maintains the state’s electricity network, has a new 15-year lease over the entire building. The sale reflected a yield of 6.5%.
Perth-based Ascot Capital picked up the 4-Star NABERS rated building at 8 Buller St in a deal handled by Sam Hatcher and Elliott O’Shea of JLL.
Sentinel bought the building from the Westlawn Property Trust managed by Clarence Property, and held it in the Sentinel Regional Office Trust.
Sentinel managing director, Warren Ebert said the sale showcased the group’s strategy of always looking to add value to its properties where possible.
“We were delighted with the 6,300 sqm of works completed at Port Macquarie, which included a complete new A grade office fit out as well as end of trip facilities including change rooms, lockers and bicycle racks.
Works also included installation of new air conditioning units, upgrading of all switchboards, new base-build carpets, ceiling grids and LED lights, and two new lifts.
The Sentinel Regional Office Trust has a portfolio of properties worth more than $300 million, including 30 Makerston St in the Brisbane CBD, the 11 Argyle St office building in Newcastle, the CasCom Centre at Casuarina in Darwin, 200 Creek St, Brisbane, Jacana House and Arnhemica House in Darwin, 139 Grafton St, Cairns, and Central Plaza and River Quays in the Townsville CBD.
