Align makes $85m Sydney office debut
Melbourne investor Align Property Partners is speculated to be paying $85 million for a North Sydney office tower with development upside.
The 14-level, 9304 square metre building at 90 Arthur Street is fully leased with a 3.5 year weighted average lease expiry by income.
With Sydney Harbour views and near the North Sydney train station and Victoria Cross Metro, major occupiers include William Grant & Sons, behind Glenfiddich and Hendrick’s gins, and Epson.
The NABERS Energy rating is 4-star though the agents said there is a pathway to a 5-star score. The NABERS Water rating is 4.5-star.
The site spans 1187 sqm.
The seller was DWS, formerly Deutsche Asset Management, which paid Blackstone’s 151 Property Group on behalf of its Grundbesitz Global property fund, $74m in 2016,
DWS subsequently upgraded the building.
Value-add strategy
The property was marketed with longer-term redevelopment potential, with approximately 21,000 sqm of floor space identified as a possible outcome, subject to planning approval (continues below).
It neighbors the Meriton North Sydney suites complex which rises 30 levels at 80 Arthur St.
The acquisition adds a Sydney asset to Align’s portfolio of office investments and value-add projects.
Founded by Guy French-Wright and Jack Mahoney in 2019, the company focuses on commercial property acquisitions where refurbishment, leasing and repositioning can improve an asset’s performance.
In 2020, it partnered with Wingate, as capital partner, to buy 1001 Nepean Highway, Moorabbin, from businessman Larry Kestelman for $16.65m.
The five-storey, 5905 sqm office building was then refurbished and relet.
Colliers’ Joseph Lin, Alex McColl, Catherine Scott and Tyler Talbot marketed 90 Arthur St.
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