Media release

Sydney & London 22 February 2016

Property investment and asset management company, Propertylink, has partnered with the privately-owned property group Grosvenor Group (Grosvenor) to launch the Propertylink Office Partnership 3 (POP 3) fund, with the acquisition of four properties near North Ryde train station in Sydney for $94 million.

The investment is the third time that Grosvenor has successfully partnered with Propertylink in Australia in recent years. Grosvenor has committed $40 million of equity to POP3, and Propertylink intends to introduce other investors to POP3 over time, targeting similar high quality strategic assets.

Stephen Day, Propertylink Managing Director, commented: “We are very pleased to be partnering again with Grosvenor. We are positive about the future for office investments in the Sydney CBD and major non-CBD markets such as North Ryde, North Sydney, Parramatta, Chatswood and Macquarie Park, and with the tremendous development of Sydney’s rail and road infrastructure and tenant demand we will target further investments in these key markets.”

Chris Taite, Group Investment Director, Grosvenor Group said: “Propertylink has proven its ability to buy well and deliver on its active asset management strategies.  This vehicle is another opportunity for Grosvenor to secure access to good assets in Australia, with strong income and upside potential.”

The four buildings at North Ryde, Sydney, NSW are: 1 Lucknow Road, 12 Julius Avenue, 10 Julius Avenue, and 10A Lucknow Road. The assets have been acquired from funds managed by Blackstone.

The assets occupy a large land holding within North Ryde’s hi-tech office precinct. The precinct is serviced by Epping Road, the M2 Motorway & Delhi Road, providing efficient direct access to the Sydney CBD & surrounding office markets. The properties are three kilometres North West of the recently re-developed Macquarie Centre, Sydney’s largest suburban shopping centre. Several Chinese developers including Greenland and Country Garden have recently commenced or announced significant residential developments nearby.

The portfolio’s key features are a total site area of 24,480m2, Gross lettable area of 20,455m2, a 5.02 year weighted average lease expiry (WALE) and 624 car parking bays. Major tenants include Revlon, BOC and Rexel Group.

These acquisitions follow Propertylink’s successful office and business park acquisitions in the past two years in Pitt Street in Sydney’s CBD, Miller Street in North Sydney and Talavera Road North Ryde, now totaling over $500 million in value. Each of these acquisitions have been integrated into the Propertylink portfolio and have high quality income in the medium term and significant refurbishment or redevelopment opportunities longer term.

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