Forza buys another Sydney office
Forza Capital has swooped on another high yielding Sydney office.
The Melbourne asset manager led by Ashley Wain is paying ISPT c$220 million – an 8.8 per cent fully let passing yield – for 100 Pacific Highway, North Sydney.
A further $36.3m has been allocated for a major upgrade.
Forza will hold the property in a single asset fund (Forza 100 Pacific Highway Fund) now calling on investors.
A 15-20pc internal rate of return over five years is being targeted.
The forecast average distribution yield is eight per cent per annum, with an equity multiple of 1.8, net of fees, it added.
Forza backs Sydney again
ISPT developed the 19 level, 21,879 square metre A-grade office with 122 car parks in 2006.
It acquired the 2680 sqm site which made way for the project in 2000.
The asset has been held in the Core Fund.
It was represented for the sale by CBRE’s Flint Davidson, James Parry and Mitch Noonan with Cushman & Wakefield’s Kenny Duncanson and Steven Kearney.
Forza said rents are about 14pc below market level.
The deal comes nearly a year since the group bought a fully let 12 level office at 117 Clarence St, in the CBD from Investa Property Group for $138.14m – an 8.02pc yield.
Last November meanwhile, Forza acquired a warehouse converted office at 223 Liverpool Street, Darlinghurst, for $64.5m.
That seller was ST Real Estate.
That result demonstrated a c8.2pc return.
Subscribe to our newsletter at the bottom of this page.
