Property Bank Australia (PBA) has sold an under-rented office with development upside in North Sydney for $54 million to Western Sydney Wanderers chairman Paul Lederer.
The Perth based vendor acquired the seven storey, 3442 square metre building at 53 Berry Street in 2013 from Charter Hall for $19.75m – and recently renovated.
Telstra occupies a ground floor retail space.
Knight Frank marketing agents Tyler Talbot, Graeme Russell and Dominic Ong said the asset has rental reversion opportunity.
It also has commercial development upside – both with a short (2.3 year) Weighted Average Lease Expiry and because of the 653 sqm parcel’s locational attributes – on the south west corner of Miller St opposite the proposed Victoria Cross Metro station, surrounded by skyscrapers (story continues below).
The sale price reflects a 4.72 per cent passing yield.
PBA acquired the property as part of a spending spree which also included 110-112 Christie St, St Leonards – the home of media group, Fremantle, which cost $8.675m on a 9.65pc yield.
That three level, 1608 sqm office – also with development potential – was offloaded last March for $21.97m reflecting a 4.9pc return following a deal negotiated by CBRE’s Jason Lowry, Toby Silk and Nicholas Heaton.