117 Clarence Street, Sydney

Investa Commercial Property Fund (“ICPF or the Fund”) has announced it has acquired a 100% freehold interest in 117 Clarence Street, Sydney (the “Building”) for $153 million on a market yield of 5.4%

The 15-level building comprises 12,517m2 of office and retail net lettable area with large flexible floorplates averaging 1,015m2 and a highly efficient 4.5-star NABERS Energy rating.  The Building is fully leased, with a diverse mix of government, corporate and not-for-profit tenants including Government Property NSW and The Smith Family.  Recent refurbishment works include a new chiller plant, bathroom, lift lobby upgrades and new end-of-trip facilities, which incorporate showers, lockers and bike storage, enhancing amenity for tenants.

Group Executive and ICPF Fund Manager, Jason Leong said: “The acquisition of 117 Clarence Street reinforces ICPF’s presence and commitment to Australian CBD office markets and reflects our focus on assets located in emerging precincts with long-term repositioning potential.

The Building is situated amid a rapidly changing precinct, surrounded by new cutting-edge office, retail and residential developments including Arc by Crown Group and Investa Office Fund’s Barrack Place at 151 Clarence Street”, said Mr Leong.   

117 Clarence Street also benefits from a multitude of existing public transport options including Wynyard Train Station and the Bus Interchange within 120 metres, as well as pending Darling Harbour Ferry Terminal, Sydney Metro, CBD and South East Light Rail. 

Combined with the above, the Building’s tenants and guests are well positioned to take advantage of surrounding retail, hotel and entertainment amenities including Darling Harbour, King Street Wharf and Barangaroo precincts.   

The acquisition of 117 Clarence Street follows a very active year for ICPF; delivering strong leasing performance across its portfolio with 97% occupancy, solid rental growth and solid valuation uplifts of 7.5% throughout the year. The Fund also divested 130 Pitt Street in Sydney, which delivered a significant premium to book value at approximately $21,000 per square metre and a record price for the asset. These achievements have secured an outstanding 19% net annual total return to May 2018 on the IPD/Mercer index for core office funds, placing ICPF as the top performer.