George Street Tower Hits the Block for $150m

Property fund manager RF CorVal plans to divest its 15-storey Chatswood office tower with expectations around the $150 million mark.

The 67 Albert Avenue asset is tipped to generate strong interest thanks to a booming infrastructure sector driving demand in Sydney’s metro office market.

The property fund manager, which was established in 2009 and holds a 41 strong property portfolio in excess of $1.9 billion in value, acquired the tower in 2014 from Eureka Funds Management for $84 million.

The Chatswood tower, one of five A-Grade buildings in tightly held Chatswood, offers development upside with the potential to add a second 7,100 sq m office tower on-site due to its stage one DA approval.

According to the Property Council of Australia’s recent office market report, Sydney’s CBD office vacancy rate is at its lowest in more than ten years, with NSW claiming five of the top ten markets with Australia’s lowest vacancy rates.

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Cushman & Wakefield’s Steven Kearney and Mark Hansen are managing the sale with Adam Woodward and Jon Chomley from Colliers International.

“The Chatswood CBD has witnessed ongoing leasing demand from blue chip corporates and State and Federal Government due to the substantial levels of infrastructure investment,” Chomley said.

“This has resulted in strong rental growth and reducing incentives, with vacancy rates for A-grade office space currently at just over six per cent.”

The Chatswood tower is 97 per cent leased to tenants such as Westpac, GPNSW and Du Pont Australia with a WALE of three years.

The asset is located adjacent to the Chatswood Transport Interchange and Westfield Chatswood.

The property will be sold via an expressions of interest campaign which closes 26 September 2018.