Asset managers trade $182m homemaker centre
Growthpoint and Blackrock APAC Real Estate have sold a lower north shore homemaker centre after seven years.
The asset managers are banking $181.5 million for Home HQ Artarmon at 1 Frederick Street, completed 15 years ago, with 23,945 square metres.
They paid Fortius $140m.
Another c$16m was spent on upgrades.
The incoming owners, in a 50:50 partnership, are Aware Real Estate and Barings, the latter for the Bravo V fund.
The deal comes less than a week since we reported Revelop bought the strata titled retail component of St Leonards’ 88 by JQZ project – also for a significant sum.
Home HQ Artarmon
On 1.62 hectares, Home HQ Artarmon rises three levels with a basement car park. Including at-grade spots, it has 427 bays.
Marketed as the only large format retail investment in the area – a primary trade area with a median household income 46pc above the metropolitan average – it is anchored to Freedom Furniture, Nick Scali, Provincial Home Living and The Good Guys.
Depot Brewery recently anchored a food and beverage space.
With a seven per cent vacancy, the weighted average lease expiry by area is four years.
When Growthpoint bought the asset, it was 71pc occupied.
Aware and Barings co-hold assets including a build to rent portfolio – boosted in July with the $285m mid-construction purchase of ‘Fortitude Valley’s Brunswick & Co complex from Frasers Property Australia.
It October we reported Barings, a subsidiary of Massachusetts Mutual Life Company, or Mass Mutual, bought Sydney’s Darling Square complex from Aware with Lendlease on behalf of the Prime Property Fund.
Brava makes it three
Home HQ Artarmon holds a dominant position in the suburb, near two train stations, JLL marketing agents Nick Willis and Sam Hatcher with McVay Real Estate’s Sam McVay and Dan McVay, said.
The NABERS Energy and Water ratings are also 6-star.
It will be the third asset bought since September for the Brava V fund, the fifth trust in the Australian Value Add Fund series, kicked off in 2010.
“We acquired this quality asset in 2018 with a defined strategy to reposition the tenancy mix and enhance the income profile with a vision for what the value-add could be,” Growthpoint executive director, Funds Management, Sam Sproats, said.
“We are proud to have delivered this strategy and with a ‘full house’ of complimentary tenants, the new owners can look forward to strong demographic growth,” according to the executive.
“As we realise the value of the asset at the end of the fund term, our investors can be very satisfied with the repositioning delivered and value created,” he added.
Artarmon is about eight kilometres north of Sydney’s CBD.
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