Abacus Property Group Announces Sydney CBD Office Acquisition
December 15, 2021 – Abacus Property Group announced that it has exchanged contracts to acquire a 100% leasehold interest (296 years remaining) in 77 Castlereagh Street, Sydney NSW, with settlement anticipated in January 2022.
The property has a prime location in the vibrant heart of the Sydney CBD, with a prominent entry from prestigious Castlereagh Street and is located in close proximity to existing and extensive public transport connections.
Set to benefit further from the Martin Place Metro Station completion in 2024 and strategically integrated above multiple levels of the Westfield Sydney living centre, the office accommodation comprises 11 levels of circa 1,200 sqm floorplates with an efficient centre side core configuration.
The building has a 5.5 star NABERS Energy Rating, a weighted average lease expiry (WALE) of 4.3 years and is 95% leased.
Total consideration for the acquisition is $250 million, excluding transaction costs and reflects circa $18,995 per square metre of net lettable area (NLA) or a 4.63% cap rate.
The asset is currently leased at rents that are significantly below market and as a result, coupled with the attractive location and amenity provided, offers material upside in the medium term while generating a 4.0% fully leased yield. The acquisition will be funded from existing debt facilities.
Managing Director, Steven Sewell commented “Being integrated above Westfield Sydney, a world-class retail offering, the acquisition continues the Abacus theme of acquiring assets with good amenity and a clear path to income growth.”
“With a pathway to medium term repositioning, this is a great opportunity for the group to implement active asset management strategies and transition the building to an A Grade standard which will unlock rental reversions and ultimately deliver long term sustainable returns for our stakeholders.”
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