North Sydney Building Sales Continue After $52m Transaction

A Hong Kong-based Chinese investor has acquired a freehold 4,930sq m office tower in North Sydney for $52 million.

The tower at 75 Miller Street is situated on an elevated corner 100 metres from the North Sydney Train Station, bringing in a fully-leased income of around $2.9 million from multiple tenants.

The 12-storey building was sold by Property Bank Australia and Security Capital Corporation on a net yield of 5 per cent, and a land rate of $10,500 a square metre.

The vendors originally purchased the building in 2011 for $22.25 million.

[Related reading: Chinese Investment Plunges 51% But Remains Ambitious in Australia]

According to the Australian Financial Review, the transaction was a record for B-grade buildings in North Sydney. It was the third North Sydney office building Property Bank Australia and Security Capital Corporation have sold in the past six months.

The duo sold 8 West Street and 116 Miller Street with RG Capital for $60 million and $135 million respectively in July. Knight Frank’s Tyler Talbot and Dominic Ong helped push the transaction through, along with CI Australia’s Bevan Kenny and Chris Veitch.

Chinese outbound investment in Australia was $US738 million in the third quarter of this year, which was a notable increase compared to the $US496m of investment reported in the entire first half.