Growthpoint has agreed to pay $52 million for the leasehold of a six level Sydney Olympic Park office.
The deal, with Charter Hall FLK Funds Management Limited, is being struck on a 5.5 per cent initial yield.
To settle, it requires approval from the Sydney Olympic Park Authority and Charter Hall Direct SOP Opportunity Fund unitholders.
The acquisition comes three months since EG, for a new fund to be held with GIC, paid Growthpoint $66.1m for the leasehold of two offices in the suburb – a deal reflecting a 7.2pc passing return.
These properties – 102 Bennelong Parkway and 6 Parkview Drive – carried a blended 1.83 year Weighted Average Lease Expiry.
11 Murray Rose Avenue
Opposite Sydney Olympic Park stadium, Growthpoint’s newest investment, 11 Murray Rose Avenue, was completed three years ago.
It contains 5685 square metres of lettable area including ground floor retail.
The A-grade office component is fully leased; major tenants include B2G Consortium, which was recently acquired by global insurance company Marsh and McLennan, and Energizer Australia.
By income, the asset’s WALE is 4.9 years (story continues below).
Knight Frank’s Graeme Russell and Tyler Talbot with GJS’ Jason Wright and Chris Bailey represented Charter Hall.
Growthpoint’s SOP portfolio worth $250m
Growthpoint said it expects to settle on 11 Murray Rose Ave within 10 days of receiving relevant approvals.
“We are very pleased to acquire this…asset in Sydney Olympic Park, reinvesting the proceeds from our recent divestment of two older assets located nearby,” managing director Timothy Collyer said.
“This asset is a great addition to the group’s portfolio and supports our strategy to maintain a portfolio of modern, high-quality, resilient assets which meet our tenants’ needs now and into the future,” he added.
“Growthpoint now owns three A-grade assets in Sydney Olympic Park with a combined value of more than $250m.
“We are confident in the long-term outlook of this key metropolitan market, which is well placed to benefit from a number of major infrastructure projects, which will further connect the area to population centres and the Sydney CBD, supporting continued strong tenant demand.
“Once complete, the Sydney Metro West is expected to more than half the current travel times to Parramatta and the CBD to six minutes and 14 minutes, respectively”.
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