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06-11-2014, 07:02 AM
Inner city sale realises huge gain for EG Funds
THE AUSTRALIAN NOVEMBER 06, 2014 12:00AM
Kylar Loussikian
Journalist
Sydney
FUND manager EG Funds Management has sold an inner-Sydney retail and office property for $50.25 million, a price 37 per cent higher than it paid for the building just three years ago.
The Surry Hills property, known as Room Four, has 4520sq m of office space and food and beverage outlets, and was purchased by EG in 2011 for $36.5m. The sale reflects a passing yield of 6.6 per cent.
It’s thought the property, which was part of EG’s Yield Plus Infrastructure Fund, was purchased by a high-net worth investor based in Queensland. The sale was brokered by CBRE and Chesteron International.
Dan Farley, EG’s associate director, said the funds would be returned to investors and not used to buy other assets.
“We are extremely happy with the sales result, and we feel that this sale reflects both good buying and good selling, given the excellent location, quality build and future potential for increased density,” he said.
The two-storey building is located on busy Crown Street, one of inner-Sydney’s most visited entertainment precincts.
There is potential to develop the building into a mixed-use project with a significant residential component.
EG has pushed aggressively into the residential property development sector recently, with a $3 billion pipeline of more than 2500 apartments.
It had traditionally focused on property advice and funds management.
THE AUSTRALIAN NOVEMBER 06, 2014 12:00AM
Kylar Loussikian
Journalist
Sydney
FUND manager EG Funds Management has sold an inner-Sydney retail and office property for $50.25 million, a price 37 per cent higher than it paid for the building just three years ago.
The Surry Hills property, known as Room Four, has 4520sq m of office space and food and beverage outlets, and was purchased by EG in 2011 for $36.5m. The sale reflects a passing yield of 6.6 per cent.
It’s thought the property, which was part of EG’s Yield Plus Infrastructure Fund, was purchased by a high-net worth investor based in Queensland. The sale was brokered by CBRE and Chesteron International.
Dan Farley, EG’s associate director, said the funds would be returned to investors and not used to buy other assets.
“We are extremely happy with the sales result, and we feel that this sale reflects both good buying and good selling, given the excellent location, quality build and future potential for increased density,” he said.
The two-storey building is located on busy Crown Street, one of inner-Sydney’s most visited entertainment precincts.
There is potential to develop the building into a mixed-use project with a significant residential component.
EG has pushed aggressively into the residential property development sector recently, with a $3 billion pipeline of more than 2500 apartments.
It had traditionally focused on property advice and funds management.