BlackRock Real Estate sells North Sydney office tower for $127M

Wednesday 04 March 2020

Singapore based, SC Capital Partners has snapped up the B-Grade asset which reflects a fully leased yield of 5% and $16,750 per sqm. The sale is testament to the revitalisation of the North Sydney market which has seen a number of new office developments and significant infrastructure spending, including the Victoria Cross Metro Station due for completion in 2024.


Built in 1990, 2EP is a 14-level commercial tower with parking for 157 cars and high retail exposure. The property has a weighted average lease expiry (WALE) of 4 years and has recently undergone a $2.7M refurbishment works program.


CI Australia’s, Managing Director, North Sydney, Bevan Kenny said 2EP was an attractive investment due to its position in the pedestrianized Central Laneway Precinct and proximity to the North Sydney railway station and the new Victoria Cross Metro Station.


“2EP is perfectly positioned within the inner circle of North Sydney’s CBD and the surrounding developments which includes 1 Denison Street, Dexus’ 100 Mount Street, 118 Mount Street and 88 Walker Street.” He said.


Simon Fenn, Managing Director CRE NSW at Cushman & Wakefield said North Sydney remains a strong performing office market which will continue to reap the benefits of the development and infrastructure activity. He said the sale had generated significant interest and the purchaser, SC Capital Partners, was attracted to the location and also the rental upside potential including the opportunity to reposition the retail component.


The sale was handled via an expressions of interest campaign through CI Australia's Chris Veitch and Bevan Kenny in conjunction with Cushman & Wakefield represented by Simon Fenn, Steve Kearney, Josh Cullen, Mark Hansen and Claire Zouroudis.

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