News and Media
Fortius Funds Management has sold its Parramatta office tower in an off-market deal for $30 million to a new property syndicator in a sign of surging investor interest in the area.
Capital Property Funds has acquired the corner site at 91 Phillip Street on an initial yield of 7.8 per cent.
Fortius acquired the building just 18 months ago when it was nearly 30 per cent vacant and has since leased the majority of the vacant space, with the most recent deal involving professional services firm KPMG taking the top floor to house its new greater western-Sydney office. KPMG will also hold the signage rights for the 5704-square-metre building.
Fortius has also refurbished the building including replacing the chillers, upgrading the building management systems, adding end-of-trip of facilities and upgrading the lifts and foyer.
The asset was typical of those the group pursues, according to Fortius fund manager Sam Sproats.
"While we have successfully leased the building to 95 per cent occupancy and intended to hold the asset for a longer term, it was determined that accepting the unsolicited offer was in the best interests of the investor group," Mr Sproats said.
The deal was brokered by CBRE's Steven Kearney.
"Parramatta is the best performing office market in the country and there is an extremely positive outlook in terms of infrastructure and future government investment," Mr Kearney said.
It has been a busy year for Fortius. Mr Sproats noted the acquisition of the Junction Fair Shopping Centre in Newcastle but the group also sold its Bankstown commercial office building to Singaporean private equity group SC Capital for just over $50 million last month. It has also struck a deal buy Bligh House in the Sydney CBD for about $70 million from Cromwell Property Group.
Fortius, which represents a number of onshore and offshore sophisticated investors, is also understood to have bought Bligh House on behalf of SC Capital, which has launched a new $400 million Asia property fund. The new fund is aimed at Australia in particular and follows the successful close of SC Capital's RECAP IV fund earlier in the year.
Australian Financial Review
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