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.