An offshore private investor has snapped up an office building with a scheme for 70 apartments at 8 West Street, North Sydney for $60 million on a sub 5.5 per cent yield.
The vendors are Property Bank Australia and Security Capital Corporation who, together with RG Capital, also sold another North Sydney building, the A-grade office complex at 116 Miller Street and 173 Pacific Highway for $135 million earlier this month as the scramble for office space in the Sydney's northern CBD continues.
Displacements caused by metro train developments in North Sydney have made vacancies tight and office assets attractive to investors with many properties trading at a premium.
Chinese private trading company General Nice Group sold its 146 Arthur Street office tower in North Sydney for $78 million.
Developer and investor Aqualand snapped up the Fujitsu Centre at 15 Blue Street, North Sydney, for $168 million.
Aqualand has been the most active institutional investor in North Sydney in recent times, either buying up towers for investment or for future development such as 61 Lavender Street in the neighbouring Milsons Point for $140 million, with plans to convert it into a luxury 135-apartment project.
It also has 168 Walker Street, an office building leased to SAP, which will be turned into a 415-luxury apartment block.
Perth-based international developer Zone Q Investments has also snapped up the office building at 30 Alfred Street South in Milsons Point for $55 million, also for an apartment project.
Sydney-based real estate firm Marprop bought the office building at 88 Walker Street, North Sydney for about $20 million from Singapore developer Macly Group.
These transactions occurred in 18 months.
The B-grade, 11-level 6023sq m tower at 8 West Street also attracted strong interest and the building sold in just under two months of listing. Its offices return an annual rent income of $3.2 million.
Along with 70 apartments, the future development at the site can also yield four retail suites at an indicative gross floor area of 6900sq m.
CBRE's Nicholas Heaton, Sharon Yang and Scott Gray-Spencer and Savills' Graeme Russell, Stuart Cox, Neil Cooke and Tim Grosmann sold the property but declined to comment.
