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

ATTRACTION

  • Purchased in 2014 for $46.35m at 8.6% yield
  • Long leased asset with strong lease covenants
  • Rapidly improving location

STRATEGY

  • Forecast increased occupational demand for creative space by institutional tenants
  • Capture rental growth
  • Undertake capital expenditure program

RESULTS

  • Significant cap rate compression achieved
  • Rental growth higher and tenant incentives lower than market
  • Sold in July 2018 for $90.5m resulting in an achieved IRR of >30%