Chippendale Office Sold for $68.5m

Demand for inner city office assets is holding up well with the sale and settlement of 39-47 Regent Street, Chippendale for $68.5 million to Intera Group.

39-47 Regent Street is a fully refurbished, B-Grade office building with 3,844sqm of net lettable area.

The property is 100% leased to SAE Qantm, a wholly owned subsidiary of global education provider Navitas.

The asset is underpinned by a favourable Triple Net Lease structure and an exceptional cash flow with a 10.3 years lease term remaining to the whole building tenant with a further 10 year option.

Intera Group has previously been active in the office sector with the acquisition of 65 Berry Street from Charter Hall for $212.5 million. The Group also owns three other office buildings on Sydney’s north shore.

With a net passing income of $2.85m, the sale represents a passing yield of 4.1%.

The sale campaign by JLL and Karbon Property generated significant interest from investors domestically and across the APAC region, a testament to the depth of capital demand for long WALE opportunities at present.

JLL reported a number of interest parties identified the precinct as a high-conviction growth sub-market due to its adjacency to the Central Technology Precinct, which will be anchored Atlassian. Additionally, the precinct’s unrivalled infrastructure connectivity and retail amenity was seen as a key drawcard for the asset.

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About Warwick Petschack

Warwick has over 25 years of property investment and management experience. Principally responsible as Managing Director for Capital Management Australia and Joint Managing Director for Chauvel Capital Partners and Editor of Australian Property Markets News.

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