University of Sydney offloads office, apartments
The University of Sydney has sold two more properties – part of a 12-asset portfolio in the Arundel Accommodation Triangle the school announced it would offload earlier this year.
The newest deals, a Glebe office and Forest Lodge apartment complex, are trading for a total of $46.05 million.
It brings to seven the number of investments divested; four terraces netted c$8m.
Four more properties are on the market, expected to exchange early next year.
A USYD spokeswoman said the portfolio was deemed surplus to needs.
Proceeds will support its core research and teaching, she added.
They will also be put toward the c$40m refurbishment of 38 terraces at its main Camperdown/Darlington campus.
Glebe office has residential development upside
In the biggest new deal, USYD is banking $39 million for a six level office tenanted to the Woolcock Institute of Medical Research.
The deal for 431 Glebe Point Road reflects a very low 1.5 per cent net passing yield.
Built in 1927 as a laboratory for Frederick Stearns and Co, and extended 21 years later to spread 6394 square metres, former owners include Max Factor Co, Security Storage and Abacus Funds Management.
The University of Sydney picked it up for $14.8m in late 2005.
On 2145 sqm, it contains 43 car parks (story continues below).
Colliers marketing agenets Andrew Graham, James Cowan and Samantha Carroll said 24 offers were received from a mix including office and residential developers; in the end, a local private investor was the buyer.
“The building benefits from an abundance of natural light, outstanding water views and street frontages encasing much of the location [the asset is at the corner of Leichhardt St],” they added.
“The $39m transaction speaks to the current low interest rate environment and associated pent-up investment demand”.
Forest Lodge
Meanwhile at Forest Lodge, immediately north of its main campus, USYD is banking $7.05m for an older style four storey apartment complex, Selle House.
At 28-30 Parramatta Rd, with a second frontage to Arundel Street, the asset contains 14 strata titled apartments, half with one bedroom, the balance being studios.
Twelve of the dwellings have balconies.
The 613 sqm R1 zoned block also contains six car parks.
The school offered the property with vacant possession.
The fully let gross annual income is estimated at $280,000, putting the market yield is 3.97pc.
BresicWhitney’s Shannan Whitney and Michael White were the agents.
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