North Sydney, NSW

OFFICE
Opportunity
  • Potential to turn around a well-located asset with limited appeal at purchase, through active management and lease reposition
  • With a short WALE of over 20 tenants and a 14% vacancy, the asset was hard to fund and required intensive management, limiting its appeal to many buyer groups and hampering pricing
  • Its multi-tenanted profile provided diversity of income and whilst management-intensive mitigated income risk
Management Value Add
  • 17 lease transactions out of a total of 26 tenancies were reset within 2 years of purchase, eliminated building vacancy at purchase and improving the WALE from 2.0 to 3.3 years
  • Sold at significantly enhanced yield, delivering a 42.8% IRR to investors (relative to target IRR of 11%)