LGA fund snares Tharkal's Sussex St

THAKRAL has made a 60% profit from the sale of an office building at 120 Sussex Street to LIF Pty Ltd, as trustee for Local Government Property Fund.

Thakral has sold the property for $41 million, after purchasing it for $25 million two and half years ago.

During its ownership, the group refurbished the 10-storey office building. The sale generated a net cash profit to Thakral of $11.5 million.

The property provides 6,550 sqm of space and its major tenants include Xpedite Systems,

Informa and Smart Salary.

Thakral’s managing director John Hudson said the deal demonstrated the ability of Thakral to buy well and maximise returns of assets through high quality redevelopments and refurbishments.

“We bought 120 Sussex Street with a view to capitalising on the considerable development opportunities the building offered while taking advantage of the planned improvements in the western corridor of the Sydney CBD.

“Today, following the redevelopment of much of Sussex Street, there is strong demand for investment grade property as it is becoming the home for a number of Australia’s leading companies,” he added.

The Sussex Street sale is scheduled for completion on 16 August 2007. CB Richard Ellis, acted as the agent for the deal.

Australian Property Journal