SAITeysMcMahon has snapped up another Sydney office building at $120 million.
Located at 233 Castlereagh Street, the 31 storey building is owned by Lend Lease Real Estate Partners 1 and Leighton Properties.
The property was acquired in late 2002 as a joint venture between REP1 and Leighton Properties with a strategy to refurbish the asset to institutional quality undertake a leasing campaign, then divest the asset.
The project has delivered a return of over 20% per annum, with REP1 delivering a return on the Fund, in excess of 19% per annum, far exceeding its 15% target return.
The property is currently tenanted by Moray and Agnew, Copyright Agency, Carlson Wagonlit Travel and General Pants Co.
REP1’s fund manager Nicholas Harris said for REP1, the sale represents the successful exit of the seventh and last asset in the fund, with a total return in excess of 19% per annum delivered to unitholders, exceeding the fund’s target return of 15%.
With the second fund in the series, REP2, having approximately 50% of equity committed to date, REP3 is anticipated to be launched next year.
By Nelson Yap
