GERMAN fund manager Real I.S is set to pay $104.5 million for the Commonwealth Bank office campus at 10 Dawn Fraser Avenue in Sydney Olympic Park.
The property is jointly owned by the Commonwealth Property Office Fund and Direct Property Investment Fund, each fund will get a share of $52.25 million from the sale, reflecting a passing yield of 7.0%.
The building forms part of the 57,000 sqm business campus being developed for the Commonwealth Bank at Sydney Olympic Park.
Sites 6 and 7 Dawn
CPA’s fund manager
“The sale demonstrates our strategy of active asset recycling and reduces our weighting to Sydney Olympic Park, whilst retaining a presence with the development of Sites 6 and 7 which will achieve practical completion by year end,” he added.
Funds from the sale will initially be used to retire CPA’s debt.
DPIF’s fund manager Michael Brown also said the sale proceeds will be used in the short term to retire debt.
“The sale of 10 Dawn Fraser Avenue is a capital management initiative enabling DPIF to enhance total returns whilst maintaining a strong balance sheet to fund future commitments,” he continued.
Real I.S. global head of structured investments Joachim M. Fritz said the purchase is another milestone for the company.
“We value the high quality and promising location of this property and the excellent long-term cash flow security from the major tenant in this premium property,” he concluded.
The transaction was conducted off market and settlement is anticipated by December 2008.
CPA’s share price rose 6 cents higher at $1.24.
Australian Property Journal
