PIER 8/9, WALSH BAY, SYDNEY

PIER 8/9, WALSH BAY, SYDNEY

DESCRIPTION

  • 10,254 sqm heritage listed former shipping wharf
  • Adaptive reuse for office space completed in 2000
  • Iconic presence

STRATEGY

  • Position the asset for institutional tenants who want creative space
  • Capture rental growth
  • Undertake capital expenditure program
  • Sell

ATTRACTION

  • Purchase yield of 8.6%
  • Multi let to strong tenants
  • Rapidly improving area with Barangaroo development occuring nearby

RESULTS

  • Let majority of building to Clemenger BBDO on a long term lease
  • Rental growth higher and incentives lower than market
  • Sold in July 2018 for $90.5m resulting in an equity IRR of >30% and Equity Multiple of 2.70x
  • IRR>30%