A consortium of three groups, Arrow Property Investments, Pindan Capital and US investment firm Starwood, have acquired a major St Leonards asset on Sydney’s north shore.
The A-grade seven-story office building at 29-57 Christie Street, St Leonards comprises 17,792sq m of net lettable area on a 7,636sq m site.
According to Savills Australia, the consortium came together in a proverbial “not enough to go around” moment, as demand for commercial assets in Sydney’s metropolitan suburbs skyrockets as a result of infrastructure spending.
Matthew Dunn of Savills negotiated the off-market deal.
Values have lifted in Sydney areas like St Leonards, with rail infrastructure positioning public commuters only two stops from the CBD.
The building was originally acquired by APIL and Wingate in 2014 as an office investment, ahead of the infrastructure changes in the area.
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Wingate managing director of property Ryan Levin said the new Sydney Metro rail infrastructure and proposed planning amendments in and around the property presented an ideal opportunity to capitalise on behalf of their co-investors.
“As a result, we have been able to achieve returns beyond those originally forecast.”
The building boasts Coca Cola Amatil, GHD and Fitness First as major tenants, as well as offering three levels of basement parking, a child care centre and cafe.
With a series of transport infrastructure initiatives similarly under way, the Sydney suburb of Bankstown has also experienced this level of demand, having been classified a designated growth centre in Sydney with significant town planning.
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In other major transaction news, Sydney-based Sandran Capital paid $75 million to secure a seven-storey, 3729sq m A-grade office building in Bankstown with NSW Police Force and Centrelink as major tenants.
Located at Meredith Street in Bankstown Sandran’s new building is the only A-grade asset in its market and offers large floor plates ranging from 1,730-2,100sq m, with potential for subdivision, future redevelopment or residential conversion.
The property has a net passing income of $5.4 million and WALE of 2.6 years. Sandran also owns property in Parramatta, as well as a complex in Newcastle and holdings in Darwin.