Cromwell buys Sydney’s Altitude Corporate Centre
The Cromwell Property Group has sealed a $113.28 million deal to buy an office complex in the inner-Sydney suburb of Mascot from the Goodman Group for its main local direct property fund.
The Paul Weightman-led company has completed its purchase of the Altitude Corporate Centre in Mascot in play that was flagged by The Australian in May.
The Goodman Group drew strong bids for the complex and it became another race for an office building that a local player won.
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In recent months local groups including Dexus and Charter Hall have reasserted themselves against the tide of foreign capital, although international buying remains a powerful force.
The 11-storey commercial office building bought by Cromwell sits in the heart of Mascot and is a strong performer, being fully leased to blue-chip customers including Electrolux.
The building, near Sydney airport and Mascot train station, has a floor area of 13,459sqm and sits on a 4773sqm land parcel at 163-175 O’Riordan Street.
It carries a long-weighted average lease expiry of 6.8 years, with strong fixed-rental growth and spins off net operating income of about $6.5m.
The A-grade building also carries a five-star NABERS energy rating and a five-star Green Star rating
CBRE and Colliers International marketed the building.
Goodman has made a run of successful sales Sydney suburbs with the group also selling the nearby Connect Corporate Centre to fund manager AMP Capital in a staged disposal. In that play AMP Capital took full control of the $300m facility, also in Mascot.
Cromwell has been an active buyer elsewhere and was last week revealed to be in due diligence to acquire Brisbane’s 400 George Street complex from private equity group Blackstone and German funds manager HSBC Trinkhaus.
However, as reported today in Data Room, Cromwell is facing a battle with its largest shareholder ARA Asset Management, with the Singapore-based investor expected to lift its stake in the $2.6 billion Australian real estate company as early as this week.
The column reported that ARA, which has about $US80bn ($114 billion) under management in 23 countries, is plotting its next move on Cromwell.
It is expected to lift its holding in the Brisbane-based real estate investor after its stake in the business was diluted from its 20 per cent holding by $375m placement Crowell launched last week.
This article originally appeared on www.theaustralian.com.au/property.
