EG spends $66.1m on Sydney offices
EG has picked up neighbouring Sydney Olympic Park offices for a new fund held with Singapore’s GIC.
The $66.1 million deal with Growthpoint is being struck on a 7.2 per cent net passing yield.
At Quad Business Park, both leaseholds are A-grade and about the same size – offering c5000 sqm of lettable area.
They cover 1.44 hectares but only one – 102 Bennelong Parkway, or Quad 3 – has aspect over Bicentennial Park and Badu Mangroves.
The second asset is 6 Parkview Drive or Quad 2.
All up they contain 283 car parks.
The Weighted Average Lease Expiry by income is 1.83 years.
Growthpoint acquired the investments as part of its 2016 takeover of GPT Metro Fund.
Sydney Olympic Park is about 13 kilometres west of the CBD.
EG, GIC’s Urban Regeneration Joint Venture
The Quad offices will seed the EG Urban Regeneration Joint Venture which has $400m to invest.
The fund, a GIC partnership, is similar to the EG Yield Plus Infrastructure Fund No 2, insofar as it seeks income producing real estate near new or upgraded transport infrastructure.
That (EGYPIF2) trust launched in 2016 with a $750m mandate, it matures in three years (story continues below).
EG Yield Plus Infrastructure Fund No 1 was started in 2006; it holds 17 assets worth $311m.
The parent formed in 2000.
Its portfolio value is $3.2 billion.
Last week EG closed a fund oversubscribed after announcing a 4.8 hectare Vineyard industrial investment as the seed asset.
Not long earlier it outlaid $32m for a Mansfield office park with 24 units.
That property, in Brisbane, is the fifth for the EG Australian Core Enhanced Fund, which was unveiled in mid-2019.
EG on Sydney Olympic Park deal
“The modern A-grade properties are well located within the Sydney Olympic Park precinct which is set to benefit from the construction of major infrastructure projects including the Sydney West Metro which will see the precinct directly connected to the Sydney and Parramatta CBD’s via a new station,” EG head of Capital Transactions, Sean Fleming, said of the company’s latest deals.
“In addition, the recently opened West Connex Project has also seen improved vehicular connectivity to the precinct,” according to the executive.
EG executive director Roger Parker added “we’re pleased to secure the first asset in this new $400m program with our partner, a global long-term investor, continuing EG’s proven track record in revitalising assets and neighbourhoods”.
Knight Frank’s Tyler Talbot, Graeme Russell and Tim Holtsbaum with GJS Property’s Jason Wright and Chris Bailey represented Growthpoint Properties Australia.
“The assets are in high demand as demonstrated by the number of recent lease deals from tenants seeking quality space in Sydney Olympic Park,” Mr Talbot said.
