Sussex street office tower sold for nearly $60 million

2015-10-26--NOTWAt a price of approximately $60 million, the office tower at 160 Sussex street, Sydney has been sold. The sale was conducted by Simon Fenn and Ben Azar of Savills and Vince Kernahan and James Barber of Colliers International who put the property to market via an expressions of interest campaign that closed September 3rd, 2015. The vendor was Aviva Investors, a global asset manager that specialises in real estate, fixed income, equity and multi-asset investment with over $500 billion AUS under management. Aviva’s Asia Pacific interests were taken over by JP Morgan Asset Management in December of 2014.

The buyer is the Burcher Property Group, a private company owned by Steve Burcher of Rose Bay. The group has previously owned property in the CBD, Edgecliff and Double Bay.

Rising to 12 storeys and with a net lettable area of 8,622sqm, 160 Sussex Street was built in late 1992 on the site of the old 1890 CMC House. The heritage façade was retained and incorporated into the new building. In 2012, the building underwent extensive refurbishment at the cost of $5 million. The property is currently fully leased with the major tenant being the Australian Institute of Professional Education with 3,700 sqm over six floors. Other tenants include Rankin Ellison Lawyers, Brookfield Multiplex and Healthe Care Australia.

The property last traded at $52 million in July 2007 and at $36 million in June 2004. With a net income of $4 million, the most recent sale was on a yield reported to be approximately 7%.

Meredith Baume
Commercial Research


 

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