Melbourne fund manager buys another Sydney office
Forza Capital has bought another office for a single-asset fund.
Following an off-market deal, the group is paying $64.5 million for 223 Liverpool Street in Sydney’s inner east Darlinghurst.
Vendor, ST Real Estate, represented by Fidinam Australasia Real Estate, outlaid $33m in 2016.
That seller was EG which spent $17m two years earlier and obtained a permit for a major refurbishment and repositioning.
The office was encumbered with a number of existing leases and unfavourable floor configurations, that manager said at the time of selling it on behalf of the EG Core Plus Fund No 1.
223 Liverpool Street
Once known as Holdsworth House, the heritage listed 223 Liverpool St contains c4477 sqm over five levels.
Co-work outfit Hub Australia is the sole occupier; trading as Hub Hyde Park, the weighted average lease expiry is 3.4 years (story continues below).
Refurbished by ST, it carries a 5.5-star NABERS rating.
Melbourne based Forza, led by Ashley Wain, said it is buying 223 Liverpool St for a 33 per cent discount to replacement cost.
The fund it is earmarked for is offering a six per cent distribution yield with high tax deferral, an internal rate of return between 14-16pc and an equity multiple of 1.9 times.
The deal comes over four months since Forza bought the ex-Salvation Army headquarters in Melbourne’s east Mont Albert for $15.5m – a high 11.3pc fully let market yield (or 3.7pc passing return given the vacancy).
Earlier this year the group also settled on a Sydney CBD office, 117 Clarence St, for which it agreed to pay $138.14m last August.
Both those investments were bought for single asset trusts.
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