Real estate investor and manager Cromwell Property Group (Cromwell) has acquired the A-grade Altitude Corporate Centre in Sydney for $113.28 million. The acquisition provides unitholders of the Cromwell Direct Property Fund (DPF) exposure to one of Australia’s top performing commercial property markets.
Located at 163-175 O’Riordan Street, Mascot, the asset is fully leased. Long-term tenants include Electrolux and Winc (formerly Staples) and it has a weighted average lease expiry (WALE) of 6.8 years.
Hamish Wehl, Head of Retail Funds Management at Cromwell, said the acquisition was a valuable addition to the DPF portfolio.
“Altitude Corporate Centre will further diversify the Fund’s holdings by geography and tenant profile. We are very selective with our purchases, seeking properties that will deliver strong value and stable income for our investors,” Mr Wehl said.
CBRE and Colliers acted as joint agents for this deal. Michael Andrews, NSW State Director of CBRE commented on the deal.
“Altitude Corporate Centre is located in one of the strong growth markets in Metropolitan Sydney, benefiting greatly from the new Sydney Metro. Cashflow has been underpinned by quality tenant covenants, including Electrolux and Winc who have both recently committed to new ten-year lease terms. The building has recently been refurbished and has quality amenities, including end-of-trip facilities, onsite café and abundant parking for 355 cars,” Mr Andrews concluded.
The ten-level building has a 5-Star NABERS Energy rating and a 5-Star Green Star rating.
As at 30 April 2019, DPF had delivered returns of 10.4% p.a. annualised since its inception in August 2013 (after fees and costs). The fund now has exposure to ten high-quality office, retail, and industrial property assets across Queensland, New South Wales, Victoria, South Australia, and the ACT with a WALE of 8.2 years.
For more information on DPF please call Cromwell’s Investor Services Team on 1300 268 078.