Other tenants are PFD Food Service, Nuss Removals and IGA Distribution. Existing buildings total 14,694m 2 and there is vacant surplus land capable of accommodating additional building of about 9,168m 2. The deal is difficult to analyse due to the vacant land component, although passing yield on the existing tenancies is in the order of 9.55% per annum net after allowance is made for the vacant land component.
A private investor has purchased 75-77 St Hilliers Road, Auburn, from The Local Government Superannuation Scheme for $10.5 million on an analysed market yield of 10.36% net. This is an industrial estate comprising eight large units totalling 10,911m 2 , partly older style, refurbished and more modern accommodation. One unit was vacant and was subject to a 12 month rental guarantee at $90/m 2. Individual unit sizes range from 901m 2 to 1,840m 2 and lease expiry dates are from May 2003 to March 2006.
Brisbane based property syndicator Cromwell Property Securities has entered into a contract to purchase Sydney Plaza at 59-69 Goulburn Street, Sydney. Real estate valuers sydney The commercial office tower is being acquired for $67.8 million. This is the group ’ s first move into the Sydney market. Cromwell has successfully offered six properties for syndication over the past three years.
The most recent purchase has a value that more than doubles the largest price paid previously by the syndicator for an asset. The 28 storey building was constructed in 1973 and contains 22 levels of office accommodation and three levels of car parking. The property is being purchased from a private Singaporean investor, who undertook a major refurbishment of the building last year, Cromwell intends to carry out an additional upgrade. The building is occupied by four tenants including the Environmental Protection Authority and American Express and is approx 30% vacant with a weighted average lease expiry of 4.6 years.
The property comprises 19,721m 2 of NLA reflecting $3,438/m 2 of NLA and was sold on an initial yield of 5.81% reflecting the high vacancy rate. Cromwell is seeking to raise in excess of $38 million from investors with a minimum investment of $10,000, projecting a 10% return in the first year and 10.2% in the third year.