Investa Commercial Property Fund (ICPF) today announced it has finalised the sale of 130 Pitt Street, Sydney for $229 million to PA Realty, a joint venture between Mitsubishi Estate Co and CLSA Real Estate, on an initial yield of 3.7%, reflecting ~$21,000 per square metre.
Acquired by ICPF for $112.15 in 2007, the building has 10,098m2 of net lettable area and is located adjacent to the MLC Centre, walking distance to Pitt Street Mall and Town Hall Station, with prime retail shop frontage to Pitt Street.
Jason Leong, Fund Manager ICPF said: “This is an outstanding result which delivers on ICPF’s strategy of divesting non-core assets within the portfolio at an opportune time in the cycle. The transaction achieves a strong result for investors, delivering a premium to current valuation.”
Proceeds from the sale will be used to reinvest in the fund’s development pipeline and position the capital of the fund to take advantage of compelling acquisitions in the market.