50 MILLER STREET, NORTH SYDNEY

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%