Property Bank Australia and Security Capital Corporation are offloading another office tower in North Sydney at 75 Miller Street for about $50 million.
This is the third North Sydney office building the pair has sold in the past three months. They sold 8 West Street and 116 Miller Street with RG Capital for $60 million and $135 million respectively in July.
Property Bank on its own also sold the inner city office building at 39-47 Regent Street in Chippendale leased to ASX-listed Navitas Limited for about $38 million in June.
Seventy five Miller Street is a 4930 sq m tower on a 777 sq m site. The almost fully leased building is fully refurbished and will be about 500 metres from future Sydney metro train station Victoria Cross.
It has multiple subdivision options, harbour views and a ground-floor café, gym and childcare centre on site. Seventy five Miller is situated next to the new retail centre at 50 Miller Street and will benefit from value uplift.
If the price of $50 million is achieved, it would have more than doubled the vendors’ money in six years. They bought it for for $22.25 million in 2011.
Once again demand for the building is expected to be strong with the metro development in North Sydney displacing a lot of office tenants through stock withdrawals, Knight Frank’s Tyler Talbot said.
He is marketing the property with Dominic Ong and CI Australia’s Bevan Kenny and Chris Veitch.
“Knight Frank research has forecast an average of 10.36 per cent net effective rental growth per annum over the next three years for North Sydney B-grade stock,” Mr Talbot said.
The North Sydney office tower market is buoyant. Other properties on the market are 1 Pacific Highway and 32 Walker Street.