Propertylink Group have successfully negotiated for a $48 million modern business park asset within the Lane Cove Business Park at 18-20 Orion Road while simultaneously working to acquire adjacent land for future development.
The Business Park acquisition reflected a capitalisation rate of 7.11 per cent.
Making up 9,751 square metres the business park comprises 9-storeys of office accommodation and a lower ground floor childcare centre. Car parking is provided for 342 vehicles, largely across three levels of direct access basement parking and supplemented by on grade parking adjacent to the building.
The building is currently 88 per cent occupied with a weighted average lease expiry of 2.48 years, anchored by NetCom Wireless and Bupa Dental Corporation who collectively occupy 45 per cent of the facility.
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“We are very pleased with this acquisition, providing us with an excellent business park asset for our wholly-owned portfolio and a development asset in the adjacent vacant land,” Propertylink managing director Stuart Dawes said.
“The Sydney market continues to be competitive across both the industrial and office landscape with these assets providing us with an opportunity to execute our active management approach, through repositioning of the existing asset and further, creating new assets through the development of adjoining vacant land.”
The adjacent land, located at 14-16 Orion Road, is a vacant 7,922 square metre site that contains development approval and current planning parameters in the area.
Propertylink has entered into a put and call option agreement to acquire the land for $8.6 million, with settlement expected to occur around September 2018.
Propertylink’s activity with the Lane Cove assets allowed it to increase its debt facility limit by $40 million to $340 million and extended the average maturity profile of the debt facility to 4.1 years.