Cromwell Buys Sydney Office Building from Goodman Group


Acquisitive Brisbane property fund Cromwell Property Group has snapped up an 10-storey commercial building in Sydney’s Mascot from Goodman Group.

The ASX-listed property group acquired the fully-leased Altitude Corporate Centre, anchored by Electrolux, for $113.28 million — representing an initial yield of 5.73 per cent.

Cromwell will add the 163-175 O’Riordan Street, Mascot asset to its nine property, $280 million direct property fund portfolio.

The 13,459sq m A-grade asset has a long-weighted lease expiry of 6.8 years and an annual income of $6.5 million. CBRE and Colliers acted as joint agents on the deal.

CBRE state director Michael Andrews said Mascot is one of the strong growth markets in metropolitan Sydney.

The listed Goodman Group recently offloaded a nearby corporate facility for $300 million to AMP in its Connect Corporate Centre, while strong demand from the information, media and technology sector has further tightened vacancies and increased competition in Sydney’s fringe.

▲ Cromwell has snapped up Goodman Group's Altitude Corporate Centre for $113.28 million.
▲ Cromwell has snapped up Goodman Group's Altitude Corporate Centre for $113.28 million.

Separately, Cromwell has sold the remaining 50 per cent interest in its Northpoint Tower to Hong Kong investor Francis Choi for $300 million.

The sale, along with the execution of a new €225 million three-year syndicated facility, will support the group’s growth into Europe.

Cromwell had flagged half a billion of office and retail opportunities in Europe along with another $1 billion of value-add opportunities across its existing portfolio.

Cromwell chief executive Paul Weightman said the facility, along with the proceeds of its $375 million placement, will help the group execute on its “invest to manage” strategy.

“[And] provide us with the increased flexibility required to support the continued growth of our European funds management business,” Weightman said.

The group said it will continue to execute on its “invest to manage” strategy in its equity raising presentation on Wednesday, with more than $1 billion of identified acquisition opportunities currently in due diligence and advanced negotiations.

One of those, 400 George Street in Brisbane, is undergoing due diligence with owners Blackstone and HSBC for a reported $530 million.

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