Investa Commercial Property Fund has sold an office building at Macquarie Park in Sydney's north for $81.8 million.
The property, at 6 & 7 Eden Park Drive (pictured), was sold to private equity real estate investment group Altis Property Partners for approximately $4,500 per square metre, reflecting a yield in the mid 6 per cent range.
The 18,131 sqm, A-Grade building was completed in 2008 and designed by award-winning architect Architectus. Key tenants include Du Pont, CA Pacific and Nobel Biocare.
ICPF Fund Manager Peter Menegazzo said the sale was a good result for the fund.
“We’re very pleased to finalise the sale of this asset, which delivers on our strategy of investing in prime assets located in major CBD locations and divesting all suburban asset exposures," Mr Menegazzo said.
“This strategy has been well supported by new and existing investors in recent years, with nearly A$1.0 billion
in new investments committed in the last 12 months.
"The sale was brokered by Bevan Kenny and Mike Stokes of Chesterton International and Simon Fenn and Graeme Russell of Savills following an open market campaign.
Bevan Kenny of Chesterton said there was a high level of interest in the property.
"The property was marketed to both domestic and offshore markets and attracted strong bidding," Mr Kenny said.
Macquarie Park and other suburban office locations are right back on the radar of discerning investors looking for quality assets."Simon Fenn of Savills said the buyer interest reflected the growing attractiveness of the area.
"The level of interest in this asset and the sale to Altis is further evidence of Macquarie Park maturing as a commercial precinct," Mr Fenn said.
The redevelopment of Macquarie Shopping Centre, solid public transport links and the emergence of a growing residential market, mean Macquarie Park is well positioned as a business centre in the coming years."ICPF is currently preparing to sell its other non-core asset, Kings Row in Milton, Brisbane.
The Milton site was successfully rezoned in 2014, with a significant increase in allowable floor area granted and development
approval for two residential towers comprising 293 apartments.
Mr Menegazzo added: “The Fund’s balance sheet is well-placed to make new investments in assets where we see good upside, and we will continue to assess prospective new investment opportunities as they arise.”