Property investment and asset management company, Propertylink, has partnered with China’s Fosun Property to buy the 73 Miller Street office property in North Sydney for AUD $116.5 million. The acquisition is expected to be completed by February 2015 and 73 Miller Street will become part of the property portfolio held by Fosun’s insurance arm.
The A-grade commercial tower features 14,672 sqm of net lettable area in the ‘golden triangle’ core precinct with outstanding access to public transport, 156 car spaces and views of Sydney Harbour.
The property is 100 percent leased with the NSW Government as an anchor tenant with an overall weighted average lease (WALE) expiry of 4.07 years and a 4.5 star NABERS rating. The purchase reflects an acquisition yield of 7.8 per cent.
Propertylink is a leading Australian real estate fund manager with more than AUD $2 billion in asset under management and over AUD $700 million of assets acquired throughout 2014. Fosun Property is the global property investment & management platform of Fosun Group, which is a Shanghai-based global investment group with its parent company Fosun International Limited listed on the Hong Kong Stock Exchange.
Peter McDonald, Head of Property and Executive Director of Propertylink said: “This is an outstanding value-add opportunity to reposition the asset given the prime location and amenity. The strong holding income from the Government tenant for another 4 years is very attractive and provides timing flexibility to implement the best active management strategy for the asset.”
Alain Chang, Vice President of Fosun Property & Managing Director of Fosun Group said: “Our partnership with Propertylink, a leading property investment company in Australia, to acquire the 73 Miller Street project marks a significant step in Fosun Property’s global strategy. Australia has been a very attractive market for property investment. We are glad to go alongside a local partner with asset management expertise like Propertylink and to exploit opportunities in landmark assets in the major cities in Australia, e.g. Sydney, Melbourne, etc. The 73 Miller Street has a very stable cash flow and a potential refurbishment could even make it in better shape. We hope that we can get more deals done in the future.”
Steve Day, Managing Director of Propertylink said: “We are very pleased to be partnering Fosun Group in this acquisition. North Sydney is one of our preferred markets as it is tightly held by occupiers with limited supply expected. Our strong on-ground management team has a track record of generating value for our clients and
we see this acquisition as a launching pad into other value-add commercial deals.”
Mr. Guo Guangchang, Chairman of Fosun Group said: “The 73 Miller Street Project is the first ever property investment for Fosun in Sydney. After the acquisition of ROC Oil in November 2014, we are happy to see that we can contribute more to the Australian economy. Australia has been an important business partner for China and both sides have benefitted from this connection.
The Australian property market is well known for its stable growth and transparency. It is also the reason why Australia attracts so much attention from Asian investors, including from China. We are honored to partner with Propertylink to further enhance our global presence.”
The selling agents for 73 Miller Street were Neil Brookes and James Parry from Knight Frank on behalf of Investa Property Group.