Fortius kicks an early goal with $30m Parramatta sale

​Sydney, 24 June 2015 – Fortius Funds Management has capitalised on the surging investor interest in Parramatta after accepting an unsolicited and off-market approach for $30 million for the sale of its recently refurbished 91 Phillip Street tower. Capital Property Funds has acquired the corner building on an initial yield of 7.8%.

CBRE Senior Director, Capital Markets, Steve Kearney negotiated the deal, which is the latest in a series of Parramatta investment transactions.

“Parramatta is the best performing office market in the country and there is an extremely positive outlook in terms of infrastructure and future government investment.

Fortius acquired the eight level, 5704sqm building 18 months ago when it was close to 30% vacant.

In line with the leasing campaign, Fortius has been progressively refurbishing the building, including replacing the building’s chillers, upgrading the Building Management Systems (BMS), upgrading the lifts and foyer, and adding end of trip facilities

In the ensuing period it has leased the majority of the vacant space, with the most recent deal involving professional services group KPMG taking the top floor to house its new Greater Western Sydney office. KPMG also secured the signage rights for the building, which is situated at the gateway to the Parramatta CBD.

Fortius Fund Manager Sam Sproats said that 91 Phillip Street was typical of the assets that the group pursues and the recent acquisition of the Junction Fair Shopping Centre in Newcastle was another such example.

“While we have successfully leased the building to 95% occupancy and intended to hold the asset for a longer term, it was determined that accepting the unsolicited offer was in the best interests of the investor group,” Mr Sproats said.