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‘Bittersweet’ sale as Centennial farewells trophy commercial asset at McMahons Point for $54.5m
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Centennial sells prominent 8-level office building at 182 Blues Point Road, McMahons Point for $54.5m to Winten Property Group
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Acquired in 2012 for $22.5m the landmark office/retail building was Centennial’s longest held asset – delivering 20.7 per cent internal rate of return over the single asset fund’s life
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Asset fully leased to 9 tenancies across 4,328 sqm of NLA and 3.3 year WALE
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Agents: Bevan Kenny and Chris Veitch of Stanton Hillier Parker
SYDNEY, NSW: A chapter has closed for Centennial’s founders Jonathan Wolf and Lyle Hammerschlag after divesting their longest held commercial asset at 182 Blues Point Road, McMahons Point for $54.5 million to Winten Property Group.
The fully leased, eight storey building occupying an elevated site on the corner of Victoria Street and Blues Point Road, was sold after delivering a 20.7 per cent internal rate of return (IRR) over the fund’s 13-year lifespan.
“As our longest held commercial asset, it is a bittersweet moment for Centennial as we look back to where we were as a company when we acquired the property in 2012, to where we are today,” said Mr Wolf.
“Back then we had four assets under our belt valued at $41m and a team of three, including Lyle and myself.”
“Thirteen years later the team has grown to over 50 employees across three states, we’ve acquired over 150 assets and our funds under management now stands at $2.4bn.”
The sale of the trophy asset on a 1,185 sqm site with three street frontages and boasting postcard views of Sydney Harbour and other famous landmarks was brokered by Stanton Hillier Parker.
Centennial’s Head of Funds Management, David Cupit said the asset’s premier location, strong tenant retention rates and rental levels presented an attractive investment opportunity to investors and developers.
Longstanding tenants dominate the mix of 9 tenancies across 4,328 sqm of net lettable area including Getty Images, A2 Milk Company and national infrastructure group, Seymour Whyte.
“While the One Eight Two Blues Point Road Unit Trust has been a stand-out fund over the years, it has reached its end of life and we’ve divested it at the right time in the property cycle where pricing and opportunity has aligned,” Mr Cupit said.
In closing, Mr Wolf added: “The asset has been a great property investment and excellent performer and we are delighted to be handing it over to Winten Property Group who will without a doubt help write its next chapter,” Mr Wolf concluded.
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