Chatswood office tower’s A-grade approach

RF CorVal is selling 67 Albert Ave in Chatswood.

The Andrew Roberts-backed RF CorVal is looking to capitalise on Sydney’s hot suburban office market with the offer of a Chatswood tower that can accommodate a new boutique building on surplus land on the site. 

The property is tipped to sell for about $150 million as the area is benefiting from infrastructure investment and its growth as a retail and office precinct.

The property fund manager bought the Sydney tower at 67 Albert Ave for $84 million in 2014 from Eureka Funds Management’s Core Property Fund 3.

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The building, held in the unlisted Value Active Fund, is one of only five true A-Grade buildings within Chatswood, and the sale will see that fund wound up.

Cushman & Wakefield’s Steven Kearney and Mark Hansen and Colliers International’s Adam Woodward and Jon Chomley are handling the sale.

The offer is tipped to generate substantial interest among local and international institutions chasing Sydney’s major suburban office locations.

The Chatswood property comprises 14,800sq m of space and parking for 193 cars. It sports large floorplates of 1100sqm, and has an efficient side core creating unobstructed views. There is approval for a second 7100sqm office tower on the site.

The building has a weighted average lease expiry of three years, consistent income and the potential to benefit from rising rents in Chatswood. The asset is 97% leased to groups including Westpac, GPNSW and Du Pont Australia.

Kearney says the complex is a rare chance to secure an A-Grade asset with strong development upside in Chatswood’s CBD.

This article originally appeared on www.theaustralian.com.au/property.