Jadan Property Group has acquired a twin-tower office at 407 Pacific Highway, Artarmon on Sydney's north shore for 16.1 million.
Reflecting a yield of 8.5 per cent, the sale follows a leasing campaign by Denison Funds Management, which has secured tenants for over 3,000 sqm at the property.
Knight Frank Directors Tyler Talbot and Dominic Ong, and David Bolt and Chris Hartigan of Hartigan Bolt, marketed the property on behalf of Denison.
Denison Funds Management purchased the asset in 2013 for $11 million, with a 43 per cent vacancy rate.
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Denison Funds Management CEO Matthew Burrows said, "The successful unconditional contract is a result of DFML's extensive leasing campaign and capital works program which saw the property increase to 100% occupancy by May 2015."Speaking to the Australian Financial Review, Mr Burrows said, "Denison has achieved their objective to reposition the asset and take advantage of a strong sales market," he said.
Mr Talbot told the AFR the property had attracted strong interest from both local and overseas buyers.
"This type of investment stock is highly sought after, offering secure long-term cash flow, being close to major infrastructure and having future re-development potential."The property is well positioned for growth, with tenant demand continuing to strengthen on the north shore. This is a 100 per cent leased investment, offering long-term security of income and growth prospects."The building is fully leased to five office tenants and features a cafe. The income before incentives is approximately $1.57 million per annum and a Weighted Average Lease Expiry of five years.