Bligh House sale earns Cromwell $13 million in two years

News of the WeekThe sale of Bligh House at 4 Bligh Street, Sydney, has yielded $13 million in less than two years for vendors Cromwell Property Group. The property recently changed hands at $68 million at an initial yield of 7.5 per cent in a sale arranged by Vince Kernahan and James Quigley of Colliers International and Steven Kearney and Scott Gray Spencer of CBRE. The property has been purchased by Real Estate Capital Asia Partners IV Fund (RECAP IV Fund), which is managed by SC Capital Partners Group.  Fortius Funds Management was retained by RECAP and SC Capital as a partner in the acquisition.

The Cromwell Property Group, beginning life as Cromwell Corporation Limited in 1970, is listed on the Australian Securities Exchange and is now one of Australia’s leading property investment and funds management groups. It has a $2.2 billion property portfolio and assets of $12.1 billion under their management.

Purchaser, Real Estate Capital Asia Partners IV Fund, has been active recently in the Australian market through the purchase of 2 Meredith Street in Bankstown, Rydges Darwin Airport Hotel and Resort and a 50% stake in the Harbour Town retail complex in Docklands, Melbourne. SC Capital Partners Pte Ltd is a Singapore based, institutional real estate private equity investment company. Fortius Funds Management, established in 1991, is a privately-owned Australian investment management group owned by founder, Ray Sproats of Palm Beach, and other members of the Fortius staff.

According to Sydney Cityscope, Bligh House is a commercial tower with 17 levels of offices, ground floor retail space and basement parking. Sitting on a site area of 1,216 sqm, the building has a net lettable area of 9,963 sqm and a NABERS rating of 4.5 stars. It is not the youngest of buildings, having been completed in 1964, but is almost entirely leased to the NSW Government and located at the “high end” of town.

The building was purchased by Cromwell in 2013 as part of a portfolio of seven buildings with $53 million having been attributed to Bligh House.


Meredith Baume
Commercial Research

About Commercial Research

CoreLogic RP Data Commercial Cityscope is a web-based service. Access is sold by geographic regions (Cityscope areas). There are 25 geographic regions across Australia (three in New Zealand), clustered around the cities of Sydney, Melbourne, Brisbane, Adelaide, Perth, Canberra and Newcastle. Darwin and Hobart CBD centres aren’t covered. Cityscope Areas in NSW and QLD also include lease expiry data for the most complete commercial coverage available. For more information call 1300 734 318.

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