Goodman sell North Ryde Office3 February 2020
Goodman have sold an office investment in North Ryde for $44.7m ($7,495/sqm of NLA)
The property consists of 2 office buildings on a 8,869sqm site at 1 Richardson Place, North Ryde. The site formed part of a larger site originally developed by Leda Holdings as part of Riverside Corporate Park and sold in 2001 to the Macquarie Goodman Industrial Trust for $22m. At that time the 16,240sqm site contained a new four level office building and three older style industrial buildings which Goodman have since redeveloped.
The recent sale is of a four level office building containing 4,006 sqm of NLA and a separate 2 level office building of 1,962sqm together with approx 160 car spaces. The buildings are 94% leased to a range of tenants including Telstra, and a veterinary hospital providing a 10 year weighted average lease expiry. Goodman provided a rental guarantee over the vacant areas.
The buildings generated approx $2.3m in net income and was sold by Colliers and CI Australia on a passing yield of 5.2%.
There have been few major transactions in the Riverside Corproate Park precinct in North Ryde in recent years. Investec acquired 2 Richardson Place in 2017 for $85m on a 7% yield, representing a rate of $5,590/sqm of NLA. Investec are now holding this asset for $102m.