Sydney-based fund manager EG has snapped up Mascot Police Station for $19.25 million, announcing plans to improve the energy-efficiency of the building as part of its sustainability trust.
NSW police have occupied the 2,888sq m office building at 965 Botney Road, Rosebery since 2009.
The building has a weighted average lease expiry of 5.9 years and is located between the Sydney CBD and airport.
The site was purchased by the vendor in 1997 for $7.25 million by private treaty as the Sydney's real estate market was taking off—with the property increasing in value by nearly $600,000 in just over a year.
Prior to Covid-19, the vacancy rate in Sydney's office market was at a record low of 3.9 per cent.
EG has been involved in a number of real estate transactions despite the pandemic including the sale of the Gold Coast’s Circle on Cavill for $61.8 million to Macau gambling mogul Loi Keong Kuong.
EG fund manager Michael Noblet said Mascot Police Station would become part of their High Income Sustainable Office Trust.
“EG is pleased to transact on this asset despite the uncertain times we face as a nation,” Noblet said.
“The asset has a long lease to the Government, providing income security during this period of volatility.
“EG will focus on cost effective capital works and operational improvements to reduce carbon emissions.”
Noblet said the asset was targeted for its opportunity to reduce energy consumption and carbon emissions and improve the Nabers energy rating.
In April 2019, Tasplan Superannuation Fund committed $50 million to the trust who participated in the Mascot Police Station acquisition.
The trust has also acquired assets East Block and 42 Macquarie Street in Canberra as well as 95 North Quay, Brisbane.
