Yuhu Dispose 20 Berry Street as ATO Chase22 January 2020
Yuhu Group have reportedly sold 20 Berry Street for $113.888m to development group Holdmark.
The 9,723sqm B Grade building is located on the corner of Berry Street and the Pacific Highway, North Sydney. The Group acquired the building in July 2015 for $59m and a yield of 7.3%.
The building remains fully leased with SMEC occupying 49% of NLA until 2023. The 15 storey building and has several upgrade over recent years but has substantial redevelopment potential. Based on the current North Sydney LEP, the site can be developed to a height of 145m which would accommodate approx 42 levels of mixed uses.
Holdmark are predominantly a residential developer with projects in Burwood, Macquaire Park, St Leonards, Shepards Bay and Parramatta. The acquisition of 20 Berry Street on a passing yield of circa 4.2% is reported to be a long term investment by the group, however in time the location and development potential of the site may provide the right conditions for a new building.
Controversy follows the Yuhu Group as its previous chairman and father of its current chairman, Mr Huang, is unable to return to Australia following ASIO advice to the Morrison government that he was a “foreign interference” security risk aligned with Beijing. Mr Huang has been ordered to declare all of his assets – everywhere in the world – to the federal court as the Australian tax office continues to pursue him over an alleged $140m tax bill.
Yuhu Group continue to hold property at Pymble and Northbridge which they purchased in 2016/17 which may also be up for sale. The group continues to develop the Circular Quay and Broadbeach projects acquired from the Dalian Wanda group in 2018.
In 2018 the group also paid a hefty price for the Bakehouse Quarter in North Strathfield for $380m which they finally settled in 2019, shortly before the State Government announced that a new Metro West railway station will be established near the site.