A recently refurbished 10 storey B Grade building in Parramatta has sold to Chinese investors for $82m, generating a 60% gain over a short 3 year period. The vendor, Diamond Genest, acquired the building off the GDI Property group in 2016 for $51.9m.
The building occupies a prominent corner site at 80 George Street and comprises 8,093sqm of lettable area plus 103 basement car spaces. The building is 95% occupied with a weighted average lease expiry of 5 years. If fully leased, the building would generate $4.3m in net income.
The sale price represents a full let yield of 5.2% and a capital value of $10,132/sqm.
After acquiring the building, Diamond Genest upgraded the cooling towers, lifts and building systems to improve the NABERs rating to 4.5 stars.
Diamond Genest are a boutique investment group based in Sydney who also own assets in Meadowbank and Hornsby.
The deal was brokered by Colliers.