This article is from the Australian Property Journal archive
WARREN Ebert’s Sentinel Property Group has parted with one of its longest-held assets, offloading a near-10-hectare site opposite the Redland Public Hospital and Redland Mater Private Hospital that was last valued at $53.5 million.
Sentinel purchased the Cleveland Business Park for $19.7 million in November, 2010, just months after the syndicator was launched by founder and CEO Warren Ebert.
The 97,820 sqm site features about 20,000 sqm of warehousing along with 3,500 sqm of office buildings leased to Queensland Health.
Original investors paying $1 per unit in 2010 were rewarded with a 10% capital return in 2012, and recently they had another windfall when a 5.4-hectare vacant portion of the site at 2-14 Weippin Street in Cleveland was recently sold to a private investor for an undisclosed sum.
Ebert said the performance of the Cleveland Business Park for Sentinel investors had been one of the highlights of the company’s history.
“At Sentinel we take great pride in the company delivering wealth for our investors, and Cleveland Business Park has been one of the great deliverers,” he said.
For the original investment amount of $1 per unit on establishment of the Cleveland fund, investors have received a total of $3.2408 per unit, inclusive of the capital return in 2012, monthly distributions, and special distributions payments.
The latest sale delivered investors $1.81 per unit.
The total investor rate of return over 13 years is more than 20%.
Sentinel holds a remaining 5.7 hectares of the Cleveland Business Park.
Sentinel has said that it is seeking more acquisitions in 2024 after starting the year by settling the $80 million counter-cyclical purchase of two office buildings on the Melbourne CBD fringe. Sentinel raised more than $50 million from investors to acquire the Botanicca 7 and Botanicca 9 buildings in Botanicca Corporate Park in Richmond from ASX-listed Garda Property Group, on a yield of 9.32%.
