Growthpoint reaps windfall from south Sydney office
Growthpoint has divested a south Sydney office acquired when it took over Fortius Funds Management’s near $2 billion portfolio platform in 2022.
Taylors House, at 965 Bourke Street, Waterloo – purpose built 22 years ago for Taylors College, which still majority occupies – is collecting $86.95 million from Cambridge Real Estate Partners.
Fortius, for Singapore’s SC Capital Partners, paid $42.5m in 2014..
The property was previously 60 per cent controlled by the Challenger Diversified Property Group with the balance, Challenger Life.
Rental reversion
With 96 car parks and 11,024 square metres of 9B accredited space over four floors, Taylors House’s rents were marketed as being well below the c$900 per sqm, per annum, net being asked for new developments in the land constrained precinct.
The college recently renewed its lease 7.5 years.
Factoring retail tenants, the weighted average lease expiry by income is 5.9 yrs (story continues below).
The 4002 sqm block at the south west corner of Powell St was also promoted for its development upside; between Sydney’s CBD and airport, zoned MU1 Mixed Use (formerly known as B4), a residential or medical based product could be considered.
The parcel is walking distance to the Waterloo Metro station due to open this year too.
Colliers’ Alex McColl, Adam Woodward, James Mitchell, Michael Crombie, Gillian Kaplan and Lucy Mallick with JLL’s James Barber, Luke Bailliau and Mitch Noonan were the agents.
The deal comes three months since Altis for a partnership backed by Aware Super paid $121m for the 1.692ha Waterloo site previously approved for a $520m Japanese themed housing estate, to have been known as Mastery by Crown.
Instead the new owners will utilise the permit for 44-48 and 52 O’Dea Avenue for a build to rent project.
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