Growthpoint snaps up new Fox Sports Sydney building in $290 million buying spree

Listed property trust Growthpoint has spent $290 million on three Brisbane office properties and an office development site on Sydney’s north shore as it builds up the office component of its $1.54 billion portfolio. 

The new Sydney development is located at 219?247 Pacific Highway, Artarmon, within the Gore Hill Technology Park, and was purchased for $82.7 million, providing an initial passing yield of 8.1% on completion. 

Fox Sports will lease 48% of the 14,136 square metres of the net lettable area in a 10-year deal with two renewal options of five years each. 

The building is due to be completed in late 2012 or early 2013 and is targeting a five-star NABERS rating and five green star ratings. It will comprise six upper levels, a lower ground floor and two basement car park levels. 

The Artarmon sale was negotiated by Richard Horne, national director of investment sales at Knight Frank. 

The three other buildings that make up the transaction include two modern office buildings in South Brisbane bought for $96.8 million at an initial passing yield of 8.6% with 11,561 square metres of net lettable area and an A-grade 24-level office building at 333 Ann Street in the Brisbane CBD bought for $109.9 million, providing an initial passing yield of 9.1%. 

South Brisbane tenants include Fusion, Roche and the Queensland government while Anne Street tenants include Runge Limited, Robert Bird Group and Xtract Mining Consultants. 

The Brisbane deals were negotiated by Bruce Baker and Flint Davidson of CBRE. 

The four properties will bring Growthpoint’s portfolio to 40 properties and increase its book value to about $1.54 billion. 

Commenting on the acquisitions, Growthpoint managing director Timothy Collyer says they are consistent with its strategy to “acquire quality modern properties that are well tenanted to enable future growth of the group’s distributable income”. 

“The acquisitions continue our diversification into the Australian office sector,” he says. 

Following these acquisitions, the property portfolio will comprise 47% office property and 53% industrial property. 

Growthpoint’s properties are located in each of the mainland states close to CBD infrastructure such as airports and ports. 

The purchases will be financed via a $166.4 million equity raising, with the balance funded through extended debt facilities.

 

 

 

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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