Sydney, 10 February 2015 – Leading
property development and investment company Capital Corporation has reaped $35
million from the off-market sale of a high profile office building in Mascot.
Chapel Street Pty Ltd, also known as C.R.
Kennedy, has acquired the seven-storey, 15 Bourke Road property to house its
CBRE’s Olivia Skinner negotiated the
sale of the 8,832sqm building, which is presently 100% leased to multi-national
tenants such as DHL, Tyco and Hansen Yuncken and also houses the South Sydney
office of JLL.
C.R. Kennedy is Australia’s foremost importer
and distributor of photographic, medical, CCTV and survey equipment. The
acquisition provides the company with an income producing asset that will also
accommodate its headquarters in circa 1,600sqm of space, which is due to be
vacated by Avis.
Capital Corporation purchased 15
Bourke Road in 2011for $29 million. Since then they have subdivided the site
into two lots, with the front portion of the site being developed as a 123-room
hotel, pre-leased to Adina and due for completion next month. Ahead of that,
Capital has finalised the 15 Bourke Road sale for a value for value $6 million
in excess of its initial purchase price for the entire site in addition to
receiving a 10% return during the holding period.
Capital Corporation Director, Steve
Grant, said; “We're extremely pleased with the outcome and will be utilising
the funds to develop other current projects in addition to continuing to looking
for future opportunities.”
C.R. Kennedy has meanwhile been able
to benefit from residential rezoning in South Sydney to sell its nearby Coward
Street site to a development group.
“These transactions highlight the
strength of the Mascot market, which has undergone a rapid transformation in
recent years,” Ms Skinner said.
“The residential rezoning that has
occurred in South Sydney has created significant demand from owner occupiers
and office tenants that have been displaced but want to remain in the area
given the increased amenity, access to transport and generous parking ratios.
For C.R. Kennedy, the acquisition of 15 Bourke Road has achieved their dual aim
of keeping their offices in Mascot, whilst also finding an asset that was
The sale comes amid continued demand
for residential development opportunities in South Sydney, as highlighted late
last year by Meriton’s $75 million acquisition of Church Avenue Mascot. CBRE
negotiated the sale of the site, which settled in December. Ms Skinner said
that transaction and the sale of the C.R. Kennedy site were prime examples of
the strength of the area’s residential market.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 52,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 370 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.