A syndicate managed by Perth-based fund manager, Lester Group, has sold an office building at 12 Waterloo Road, Macquarie Park, for close to $26M.
The sale to a local private investor reflects a fully leased yield of 5.7% and $6,750/sqm. 12 Waterloo Road is a 3,800sqm four-level office building with parking for 86 cars on a 4,149sqm site. The property has a weighted average lease expiry (WALE) of 6.25 years and features a long-term lease to Montessori Academy on the ground floor. Lester Group purchased the property in 2015 for $14.55M, undertook a refurbishment programme and leased 2,200sqm during their ownership.
Lester Group’s, Adrian Lester said, “We are delighted that our strategy to reposition and re-lease the property, coupled with New South Wales’ strong economic fundamentals, has resulted in considerable value add for our syndicate members.”
Significant residential and commercial development activity in Macquarie Park, coupled with the connection of the Southwest Metro Line to the existing Northwest line Sydney Metro line in 2024, is expected to drive rental growth in the area.
CI Australia’s, Director, Investment Sales, Chris Veitch said the purchase was a strategic investment by the private investor to take advantage of growth prospects in the precinct. “Macquarie Park had its lowest vacancy rate in its recorded history at 4.9% with office rents of $100 - $150/sqm, being more affordable than competing markets, Chatswood and Parramatta. The present development activity and Sydney Metro line completion in 2024 will positively re-rate this market.” Veitch said. 12 Waterloo Road is a five minute walk to Macquarie Park Metro station and close to the new Lachlan’s Line Residential Precinct which will deliver some 2,500 apartments. Stage 1 is almost complete which includes 900 apartments, a Coles Supermarket, Liquorland and 16 specialty shops.
The building was sold by Chris Veitch and Bevan Kenny of CI Australia via an Expressions of Interest campaign which closed on the 30th October 2019.