Two Chinese investors have made their money back and then some after offloading an asset in the Sydney CBD for $90 million.
Sydney-based Xiaoxuan Zhong and Jingru Lin of Pyrmont were the vendors of the 12-storey building located at 299 Elizabeth Street, selling the office tower to a private investor. The property was listed in November 2017.
It was acquired in 2014 by Zhong and Lin for $45 million from the Burcher Property Group. The $90 million sale represents an initial yield of 4.19 per cent.
The corner building is 5974 square metres and has an estimated fully-leased net rental income of $3.77 million and a weighted average lease expiry of 3.2 years.
[Related reading: Probuild Commences Construction on Sydney’s Tallest Residential Tower]
Investors Zhong and Lin also own the Big Bear Shopping Centre in Neutral Bay through their investment company JX Capital, they acquired the centre for $100 million in 2015.
The office building sits in an area earmarked for residential development. The Shanghai United, Candalepas-designed Castle Residences commences construction just around the corner from the Elizabeth Street tower next month. Shanghai United sold 50 per cent of the development, including the $18 million penthouse, at the launch in August 2017.
Major tenants at 299 Elizabeth Street include Genesis Offices, Shine Lawyers and Henry Parkes Chambers. The building was completed in 1989 and designed by Sydney architects, Rice Daubney.