A historic building at The Rocks in Sydney has been purchased by Hong Kong-based real estate funds manager Terraform Capital for $21 million.
The six-level, heritage-listed building located at 117 Harrington Street, is held through a 99-year ground lease to the Sydney Harbour Foreshore Authority.
The building which sits on a 379sq m site, was refurbished in 2007 and offers a net lettable area of 1,404 square metres. It is currently tenanted by CCUBE, Iris Sydney and Artazan Property Group.
It is the latest acquisition for Terraform Capital, a group which focuses on real estate funds management, hospitality and co-working, with operations in Hong Kong and Sydney.
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The Harrington Street property is strategically positioned within The Rocks, bordering Circular Quay, in a location set to benefit from major infrastructure projects such as the Sydney Light Rail, Sydney Metro, Circular Quay Ferry Wharf upgrade and Wynyard Station upgrade.
The building's layout includes outdoor areas, a point of appeal for creative office occupants.
The acquisition will increase Terraform Capital’s number of assets under management in Sydney to five, with a combined value of more than $500 million.
CBRE’s Kenny Duncanson and Harry George managed the sale of the building which currently generates a net passing income of $1.1 million.
“The high yielding nature of leasehold and heritage investments underpinned the high level of interest in the campaign, as did the building’s strong investment fundamentals and diverse tenancy mix,” CBRE commercial property agent Harry George said.
The sale by Sumner Capital, completes a fund disposal for one of its Swiss clients, who acquired the building in 2013 for $13 million.
Sumner is an active player within the Sydney market. Four years ago it bought Pier 8 & 9 on the Walsh Bay waterfront for $8.25 million. Last year it sold the Walsh Bay office space for $90.5 million.
Elsewhere in Sydney the group has refurbished and leased up 50 Miller Street, a North Sydney asset it owns jointly with Prime Super.