AOF sells Macquarie Park asset for $68.8m

12 December 2022

Australian Unity has exchanged contracts to sell 2 Eden Park Drive, Macquarie Park for $68.825 million on behalf of AOF.

2 Eden Park Dr, known as Rydecorp, is a modern office and warehouse building, consisting of 16 individual units across 10,354sqm with lift access, secure basement car parking. The property is located 150metres from the Macquarie Park Metro Station and is zoned B3 with a potential GFA of 25,000sqm.

The sale price represents a 10% premium to the 30 June 2022 independent valuation of $62.5 million which had been based on a external valuation at a cap rate of 5.25%.

Settlement, which is conditional on the purchaser finalising financing documentation, is expected in February 2023 with net proceeds initially used to repay debt.

The sale of assets in the fund continues the investment strategy of Australian Unity to realise the capital gains in the portfolio.

Nikki Panagopoulos, AOF Fund Manager said “The sale of 2 Eden Park Drive, Macquarie Park follows the receipt of a number of unsolicited offers and an off-market process. The sale, at a material premium to the asset’s independent valuation, represents a compelling opportunity for AOF to realise capital while also reinforcing the quality and value of AOF’s portfolio. The sale is consistent with AOF’s previously announced value maximisation strategy.”

“The sale of 2 Eden Park Drive, Macquarie Park and the previously announced conditional sale of 30 Pirie Street, Adelaide would position AOF’s balance sheet by reducing debt and providing a strong platform to continue to advance AOF’s near term priorities. AOF will continue to focus on leasing activity, and refurbishment opportunities, including at 10 Valentine Avenue, Parramatta where make-good works have commenced.

“Following these anticipated settlements, AOF’s balance sheet position would also provide an opportunity to consider the potential to return capital to unitholders through a special distribution. Any announcement regarding a potential special distribution would be made prior to 30 June 2023.”

“AOF will continue to assess its portfolio and remains open to consider further asset sales that maximise value for unitholders. Further updates will be provided to the market in due course and a portfolio update will be provided at AOF’s half year results in February 2023.”