Sale of Eden Park Offices Unlocks Capital for AOF

The Australian Unity Office Fund has exchanged contracts to sell 5 Eden Park Drive, Macquarie Park for $80.75 million.

The sale price represents approximately a 1% premium to the 30 June 2022 independent valuation of $80.0 million, based on a 5.25% cap rate. Settlement is expected in March 2023.

5 Eden Park is an A-grade modern office and warehouse property comprising three levels of office accommodation and a hi-tech production and warehouse area, approximately 450 metres to the Macquarie Park railway station on the Sydney Metro Northwest railway link.

The sale of the property comes a week after the Fund settled on the sale of 2 Eden Park Drive, Macquarie Park for $68.8 million to NKS (NSW) P/L. Both properties were earmarked by AOF for further redevelopment with unused GFA potential of 20,000sqm on each asset.

AOF continues to sell assets from the fund following large scale investor unrest in alternative strategies the Fund Manager had attempted to implement over the last few years.

Nikki Panagopoulos, AOF Fund Manager said “AOF has continued to execute on its value maximisation strategy. The sale of 5 Eden Park Drive, Macquarie Park follows the successful sale of AOF’s assets at 2 Eden Park Drive, Macquarie Park and 30 Pirie Street, Adelaide. Following the settlements of 30 Pirie Street ($73 million) and 2 Eden Park Drive and the anticipated settlement of 5 Eden Park Drive, AOF will have no drawn debt and over $40 million of cash.”

β€œThis strong balance sheet provides a platform to continue to advance AOF’s near term priorities, including progressing refurbishment opportunities and active asset management initiatives. As previously noted, the asset sales 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.”

β€œAOF expects to announce its results for the half year ending 31 December 2022 on Monday, 27 February 2023.

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