AMP Capital Diversified Property Fund has sold two office warehouse buildings at 44-50 Waterloo Road, Macquarie Park, for $71M to ESR Management (Australia) Limited.
The properties were marketed by CI Australia’s Bevan Kenny, Chris Veitch and Shirley Fan via an EOI campaign that closed late November 2020. The campaign was highly competitive with bids from domestic and offshore listed REIT’s, funds and private investors as well as data centre operators. Contracts were exchanged late December 2020.
The existing buildings have a combined gross floor area of 7,155sqm and are 90% occupied by Macquarie Universities’ School of Engineering (Robotics) which relocated to the site from the University campus on a 5+5 year lease in 2018.
With a site area of 1.5 Ha, three street frontages and close proximity to the Macquarie Park Metro Station the site is ripe for future development as the Macquarie Park precinct continues its evolution.
The sale to ESR gives the listed Singaporean developer a prime holding to develop when the time is right. The site has a B3 Commercial Core zoning and potential for a bonus floor space ratio up to 3:1 and 65m height limit, opening the possibility for a mix of uses in multiple towers including offices, hotels, serviced apartments and data centres.
The sale reflects a rate of $4,657/sqm on the land area and $9,923/sqm on the building area.
CI Australia’s Director of Investment Sales Chris Veitch said, “As long time advocates of Macquarie Park, we are delighted with the result for our client AMP and the strong response we received from the market. With three metro stations and an active commercial and residential development pipeline, the next 5 years will be an exciting time for the precinct.”
CI Australia’s Head of Asia Desk Shirley Fan said, “Asian high net worth privates and developers have been active in Macquarie Park for some time now. A lack of opportunities in the CBD, traditionally favoured by Asian investors and developers, due to the pandemic has shifted their attention to the suburban office markets."
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