Orchard's Charlotte sale spins $17m profit

ORCHARD Funds Management has made a $17.65 million profit from the sale of Martin College in Brisbane for $45 million.

The property at 119 Charlotte Street is currently owned by Orchard’s Brisbane Commercial Syndicate and Brisbane Commercial Trust and as a result of the sale, the trust will be wound up.

The trust bought the 8,300 sqm in December 2002 from Ariadne for $27.35 million.

The 12 level modern building is leased primarily to Study Group Australia (a subsidiary of the UK listed Daily Mail), Sun Retail (a subsidiary of Energex), The State of Queensland, Kings Parking, a number of retailers on the ground floor and is also home to the Brisbane campus of Martin College.

The sale represents a rate of more than $5,400 per sqm net lettable floor area.

Orchard’s chief executive David Hinde said the sale represented an excellent outcome for investors in the syndicate and trust.

“Given the current market conditions, we consider it to be a full and fair price.

“For our unitholders that equates to a return of approximately $1.69 for every $1.00 initially invested,” he added.

Meanwhile, the Orchard Industrial Property Fund recently listed on the Australian Stock Exchange following a $205 million capital raising.

Australian Property Journal