50 MILLER STREET, NORTH SYDNEY
DESCRIPTION
- B grade office asset in North Sydney
- Let to National Australia Bank for 3.5 years from acquisition
- 10,357sqm of Net Lettable Area
ATTRACTION
- 10% purchase yield
- Good location – transport & local amenity
- Low rent
- Large, efficient floor plates
- 5 star NABERS energy rating
STRATEGY
- Core+ risk
- Enjoy initial double-digit income distribution
- Then undertake a full repositioning (new lifts, entrance lobby, air conditioning, End of Trip facilities, Building Code of Australia upgrade) in readiness for lease expiry
- Re-lease and sell
RESULTS
- Majority of building let to AAA-rated credit tenant for 12 years
- Rent exceeding underwriting
- Increased Net Lettable Area
- Reposition to A grade
- IRR >30%