Sydney, 06 April 2016 – Orca Property has completed its seventh acquisition, acquiring the current Artarmon home of Fantastic Furniture for $3.7 million.
CBRE’s Matt Lee and Peter Mangraviti negotiated the sale of the lower north shore Sydney property on a passing yield of 8.04%.
The current Fantastic Furniture lease ends next year, translating to a short weighted average lease expiry (WALE) of 18 months.
CBRE’s Mr Lee said the lease profile had been one of the attractions for Orca - a real estate investment firm that specialises in identifying and acquiring assets with value-add potential.
The property is located at 73 Reserve Road, next door to Bunnings and two doors down from HomeHQ – the only large format retail centre in the precinct.
The Artarmon property has a total lettable area of 1,622sqm spread over two levels and includes 26 basement car parks. It has been acquired on a rate per square metre of $2,281.
“Orca was comfortable with the property’s short WALE given the property’s prominent location and its suitability for a broad range of tenants in the child care, industrial or large format retail sectors,” Mr Lee said.
Orca Property Managing Director Richard Lingard said the acquisition was the latest for the group, which was founded in 2012.
“Artarmon represents our second acquisition for 2016 following an earlier, $2.25 million purchase of a whole strata floor at 88 Pitt Street in the Sydney CBD,” Mr Lingard said.
“Both assets suit our strategy of targeting under rented assets with short WALE’s in locations with strong potential for future rental growth and capital gains. This will be underpinned by the shrinking supply of stock in both Artarmon and the Sydney CBD due to future residential developments.”
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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 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 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.