Growthpoint Secures Olympic Park Office

12 June 2021

Growthpoint Properties Australia (Growthpoint) has exchanged contracts with Charter Hall FLK Funds Management Limited to purchase a 100 per cent leasehold interest in an A-grade, modern office asset, located in a prominent position in Sydney Olympic Park for $52.0 million.

The site, located at 11 Murray Rose Avenue, Sydney Olympic Park, was originally acquired by Folkestone Limited (subsequently taken over by Charter Hall) for just $24.7m in 2017. Folkestone developed the building which incorporates 5,684 square metres of accommodation, with ground floor retail, five upper levels of high-quality office accommodation and two levels of basement parking. The asset has achieved a 5.0 Star NABERS Energy rating and 5.5 Star NABERS Water rating.

The asset is fully leased to high-quality tenants with a 4.9 year weighted average lease expiry (WALE) as at 31 May. Major tenants include B2G Consortium, a consortium of four major infrastructure companies who have a longterm contract with Sydney Water, Jardine Lloyd Thompson, who were recently acquired by global insurance company, Marsh and McLennan, and Energizer Australia, a wholly-owned subsidiary of US-listed batteries manufacturer, Energizer Holdings. The property is being acquired on a 5.5% initial income yield.

Located directly opposite Olympic Park station and approximately 500 metres from the ANZ Stadium, the asset is in a premium location in Sydney Olympic Park. It also has direct access to Sydney’s orbital road network via the M4 Motorway.

The contract of sale is conditional upon receiving consent from the Sydney Olympic Park Authority (SOPA) to the sale of the property and assignment of the ground lease and approval of the sale of the property from the Charter Hall Direct SOP Opportunity Fund’s unitholders. Growthpoint expects settlement to occur 10 business days after these conditions precedent have been satisfied.

Timothy Collyer, Managing Director of Growthpoint, said, “We are very pleased to acquire a three-year old asset in Sydney Olympic Park, reinvesting the proceeds from our recent divestment of two older assets located nearby. This asset is a great addition to the Group’s portfolio and supports our strategy to maintain a portfolio of modern, high quality, resilient assets, which meet our tenants’ needs now and into the future.

“Growthpoint now owns three A-grade assets in Sydney Olympic Park, with a combined value of more than $250million. We are confident in the long-term outlook of this key metropolitan market, which is well placed to benefit from a number of major infrastructure projects, which will further connect the area to population centres and the Sydney CBD, supporting continued strong tenant demand. Once complete, the Sydney Metro West is expected to more than half the current travel times to Parramatta and the CBD to six minutes and 14 minutes, respectively.”