Investa Commercial Property Fund (‘ICPF’ or the ‘Fund’) today announced it had finalised the sale of 146 Arthur Street, North Sydney (the ‘Building’) to General Nice Group.
The 8,171 sqm, A-Grade building provided an opportunity to purchase a 100% freehold interest in a quality North Sydney asset, in one of Australia’s strongest performing office markets this year.
The building was identified as being a non-core asset for the Fund, and following a number of unsolicited bids during 2013, a transaction was finalised with General Nice Group.
General Nice Group is a leading international investment holding firm focusing on natural resources, mining, trading and real estate with operations in China, South Africa, Singapore, Australia, India and other parts of the world. The Company has more than USD$8bn in total assets and generates over USD$8bn in annual revenues. The Group’s subsidiaries include Abterra Ltd and Loudong General Nice Resources (China) Holdings which are listed on the Singapore and Hong Kong Stock Exchanges, respectively.
Peter Menegazzo, Fund Manager, ICPF said: “We’re very pleased to finalise the sale of this asset, which delivers an excellent outcome for unitholders. The transaction is in line with our strategy of divesting non-core assets and follows our recent sale of 231 Elizabeth Street, Sydney.”
The funds from the sale will initially be used to pay down debt and preparations are underway to sell other non-core assets; 6 & 7 Eden Park Drive, Macquarie Park and Kings Row in Milton, Brisbane. The Milton site was recently subject to a significant rezoning outcome that included development approval for 300 apartments on the prime, fringe CBD site.
ICPF has achieved strong leasing results this year despite soft tenant demand, with more than 94,000sqm leased since January, including a 10-year lease to Meat & Livestock Australia at Coca Cola Place at 40 Mount Street, North Sydney.
Mr Menegazzo said: “We like the outlook for the North Sydney market and intend to maintain our interest in 40 Mount Street. It has been fantastic to see such strong support from tenants for newer, prime assets in this market, which diversity and enhance the North Sydney CBD.”
ICPF’s strategy of acquiring high quality office investments and divesting non-core, selected tactical assets has been well supported by new and existing investors, with ~A$1 billion committed since the end of 2010. With new equity and proceeds from asset sales, the Fund has significant financial capacity to make new investments.
“In line with our recent acquisitions of 259 Queen Street, Brisbane and 567 Collins Street, Melbourne, we will continue to consider compelling opportunities in the market that are complementary to ICPF’s portfolio,” said Mr Menegazzo.