Council buys Alexandria’s Woolstores
The City of Sydney has swooped on three Alexandria warehouse converted offices, outlaying c$110 million.
At 4C-4F Huntley Street, The Woolstores, as they are branded, will be retained as an investment.
The off-market deal reflects a major boon for the vendor, an RF Corval-managed syndicate including the Woolstores Trust, which outlaid $51.75m in 2014, when the sheds were being repurposed.
“The sale of the asset has achieved an investor Internal Rate of Return of 21 per cent and an equity multiple of 3.1 times over the investment term,” it said.
Gentrifying area
Three kilometres from the CBD, the council’s latest asset sits in a major urban renewal zone, incorporating Green Square, which spreads across several suburbs.
Containing 10,026 square metres of Prime grade space within three buildings, high profile occupiers include Dyson, Logitech, Swarovski, Taylors Wines and Thyssenkrupp (story continues below).
Based on income, the Weighted Average Lease Expiry is 3.8 years.
The sale price reflects a c4.9pc yield (RF Corval by comparison acquired it from Trumen Corp and Bricktop Group at a 7.5pc return).
Colliers’ Michael Crombie, who with Adam Woodward and Cushman & Wakefield’s Steven Kearney and Mark Hansen brokered the latest disposal, said Alexandria Woolstores has always been successfully leased and the City of Sydney was quick to seize on it.
The industrial estate also includes onsite childcare.
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