Cambridge buys another office converted uni
Terraform Capital has sold a fully leased Sydney CBD office for $111.58 million – $220,000 less than its 2018 outlay.
The 11 level, 10,461 square metre investment, occupied by Central Queensland University as its Sydney campus, found favour with a Cambridge RE Partners arm following a campaign launched 10 months ago.
The price reflects a 7.6 per cent net passing yield.
Hong Kong based Terraform, at the time known as Longbow Enterprises, acquired it from Credit Suisse Asset Management on a 4.5pc return.
It was represented for the sale by RB Property’s Richard Butler and Stanton Hillier Parker’s Steven Tsang.
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Singapore based Cambridge is expected to hold 400 Kent Street, on 1175 sqm, in an education fund; ,it is purchasing the property via JMD Investment Management. The manager also maintains a Social Infrastructure Fund with two other Australian properties (CSIF).
Developed in 1992, renovated in 2005 when it was owned by Charter Hall, the weighted average lease expiry is seven years (story continues below).
The investment also contains 10 basement car parks.
A ground floor retail component spreads 420 sqm.
The deal comes 11 months since CSIF outlaid $116m for Port Macquarie’s Hastings Village.
With 592 beds, that is leased to Charles Sturt University for 20 years.
In late 2023 meanwhile the group spent $86.95m for a Waterloo, Sydney, office converted university campus leased to Taylors House, until 2030.
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