EG spends $19.25 million on Mascot Police Station for ethical fund
EXCLUSIVE
EG has paid $19.25 million for a Rosebery commercial building which will be added to its High Income Sustainable Office Trust – an ethical investment fund.
The acquisition of Mascot Police Station, it said, extends “the…philosophy that underpins the HISOT seeking to improve the energy efficiency of assets alongside commercial returns”.
Its investment, 965 Botany Road, was targeted for its opportunity to reduce energy consumption and carbon emission – which should see its NABERS energy rating improve.
Eight kilometres south of Sydney’s CBD and three kilometres north east of the city’s airport, it includes 2888 square metres of area over two floors.
NSW Police has occupied all of it since January, 2009.
Its lease expires in nearly six years.
Altera Group principal Michael Gould represented the vendor, a private investor.
EG is understood to have settled on the property on March 5 – about two weeks before the coronavirus COVID-19 social distancing measures and subsequent lockdown which is starting to grind local and international economies, and is expected to lead to a global recession.
“EG was pleased to transact on the asset despite the uncertain times we face as a nation,” fund manager, Michael Noblet, said.
“The asset has a long lease to the government, providing income security during this time of volatility.
“EG will focus on cost effective capital works and operational improvements to reduce carbon emissions”.
Earlier this month EG sold Gold Coast shopping centre Circle on Cavill to a Macau businessman for $61.8 million.
EG’s High Income Sustainable Office Trust
Launched in 2016, the open ended HISOT will – following the settlement of Mascot Police Station – contain five assets worth a total of about $225 million.
The fund term period was set at 10 years (however many institutions include caveats allowing for them to retain a property if the timing of a planned sale coincides with, say, a downturn).
In August, 2018 EG picked up a Brisbane CBD office for the fund at 95 North Quay Road, spending $46.2 million.
HISOT targets returns by adding value to Australian commercial assets through active asset management – in particular focusing on improving NABERS energy ratings to be at least 4.5-stars.
It is supported by Clean Energy Finance Corporation, Deakin University and Uniting Financial Services.
