Proprium Capital double money in St Leonards deal
Proprium Capital Partners Australia - the merged entity of Goldman Sachs backed Anton Capital has achieved an excellent result on 72 Christie Street in less than 12 months. The group appear to have sold the asset to UOL Group for $154M.
Proprium acquired the modern A-grade office building consisting of 11,107 square metres over eight levels and a site area of 2815sqm in February 2017 for $76M, representing a passing yield of 8.5% and a net rent of $573/sqm. The existing single tenant was due to vacate in July 2017, establishing a leasing play in a competitive suburban lower north shore office market.
By November 2017, Proprium had secured Mastercard and single replacement tenant for the building on a new 10 year lease at a net rental of circa $595/sqm plus car parking and an undisclosed leasing incentive.
Proprium now look to be selling the asset for $154M to UOL Group, reflecting a passing yield of 5.0% and an uplift of $78M (before incentive adjustments).
The site is zoned B3 Commercial and currently has an FSR of 4.5:1 which delivers little more than the current structure. Adjoining developments have achieved in excess of 14:1.