Fund manager accepts discount on office, car park sale
Australian Unity has quietly shed another commercial investment from its Office Fund (AOF) – this time in Sydney.
The vacant 14 storey office and adjoining five level, 94 bay car park, 2-10 Valentine Avenue, Parramatta, fetched $80.5 million from an as yet undisclosed buyer.
On 3935 square metres zoned Commercial Core, adjacent to Parramatta Square and a transport interchange, near Westfield, it holds significant development upside.
In March, AU made the surprise decision to propose 611 build to rent apartments in a 68 storey tower, replacing the car park.
It also recently completed a swank renovation of the 15,594 sqm office, now branded Valentine Place and for lease.
Previously the manager won permission to construct a 40,000 sqm campus style complex across the whole block.
The sale comes 10 days since we reported a six level riverside Parramatta office on 1577 sqm is trading for $21.5m.
Shocking drop in value
AU said the result for 2-10 Valentine Ave is 6.2pc short of a draft June 30, 2024, valuation ($85.5m).
It is also $15m lower than the December assessment and 33pc less than in mid-2022 ($120.55m) when the office was tenanted (story continues below).
The loss stretches to 46pc based on the December, 2021, independent appraisal ($149.5m).
Settlement is scheduled next March.
Colliers’ John McCann was the agent.
The deal comes a fortnight since AU, for AOF, sold a Beenleigh, Brisbane, office for $29.7m – an 11.4pc drop on its $33.53m outlay in 2021.
In April, the manager announced the divestment of 150 Charlotte St, in the Queensland capital, collecting $64.5m.
That result was a rise on the ($62.5m) last independent assessment.
Another AOF investment, 468 St Kilda Rd, Melbourne – a 14 floor office – is also close to sale, sources say, for less than $70m.
More to come.
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