Sydney-based Aqualand Property has completed the sale of its 14-storey office block at 54 Miller Street, North Sydney, to US-based real estate investment management company AEW for $59.4 million.
AEW acquired the property on behalf of AEW Value Investors Asia III, the third in AEW’s series of value-added funds focused on property investments in Asia’s gateway cities.
The B-grade, 1970s office block achieves around a 5 per cent net initial yield with weighted average lease expiries of 1.7 years.
It has a four-star NABER energy rating, 550 square metre floor plates with views across Sydney Harbour and Parramatta River on the upper levels and a Net Level Area of just under 7,000 square metres.
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“We secured 54 Miller Street as a strategic play and we are very satisfied with the asset’s performance,” Aqualand’s chief executive officer John Carfi said.
“Aqualand is open to recycling capital to help expand opportunities for well-positioned assets.
“Within four short years we have generated a significant property portfolio and we intend to continue managing and developing key sites within the Sydney residential and commercial sectors.”
Aqualand is selling a prime waterfront site adjoining Channel Seven properties in Pyrmont.
The sites at 6 Darling Road and 34-38 Pirrama Road were purchased by Aqualand for $180 million from the Citta Property Group in 2015. The properties are situated next to Aqualand’s luxury REVY apartment development at 8 Darling Island Road.
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Carfi, the former Mirvac head of residential, has been lured back from working in the United Arab Emirates for the last 18 months to head up Aqualand as chief executive.
Chinese-backed Aqualand retains several other North Sydney sites including 61 Lavender Street, which will shortly commence construction to be redeveloped from an office building into 129 apartments, and 168 Walker Street, which has development approval for 440 residences.
Aqualand has also been named as part of the consortium of developers for the $2 billion final stage of Barangaroo, the 5.2-hectare Barangaroo Central. Aqualand will be developing the residential component.