Jul 10 2019Add to Favorites
Subsequent to the successful Stirling 2 Byfield Street Fund in Macquarie Park, Stirling Property Funds has recently commenced marketing for investment into Stirling 203 Northumberland Street Fund (Fund). The property is located within the Liverpool CBD and comprises a quality grade B office building at 203-209 Northumberland Street, and an adjoining development site at 64 Bathurst Street, Liverpool, with both sites being on a single title.
Sophisticated investors are invited to invest into the Fund, with a minimum investment of $250,000 and forecasting a total return in excess of 12% p.a., including average cash distributions of 5.4% p.a. over the 4-year investment period. Stirling’s Directors will co-invest a minimum $1.0 million into the Fund.
The 203 – 209 Northumberland Street is being acquired at an equivalent yield of 6.8% and $5,473 per square metre of NLA, with 64 Bathurst Street acquired at a rate of $797 per sqm of GFA based on the in place Development Application (DA) with Liverpool Council.
With a vacancy rate of sub 3% for competing grade B office buildings, 203 – 209 Northumberland Street presents an excellent opportunity to capitalise on this low vacancy rate, which coupled with passing rents being 11% below market, and strong occupier demand should result in robust rental and capital value growth over the investment period.
203 – 209 Northumberland Street comprises a high-quality grade B, 8-level office building with 4 levels of basement carparking and an NLA of 7,384 sqm. It is leased to 10 high quality tenants including CBA and Westpac, who have recently executed 10 and 5 year leases, and has a Weighted Average Lease Expiry of 3.6 years. The adjoining 1,331 sqm 64 Bathurst Street has a DA lodged for 66 apartments and 2,508 sqm of commercial office.
Stirling’s clearly defined asset management strategy comprises a capital expenditure program to maximise net income from 203 – 209 Northumberland Street, progress DA approval, subdivide and dispose of 64 Bathurst Street.
“Liverpool City Centre is the third largest CBD alongside Sydney and Parramatta and the dominant Central Business District in Sydney’s rapidly growing southwest. It will benefit significantly from an unprecedented level of government and private enterprise infrastructure investment in the Local Government Area totalling $20.2 billion.” says Stirling. “The asset is located 500 metres to Liverpool train station, Liverpool Hospital, Universities of Western Sydney and Wollongong and Westfield all within 900 metres.”
“We are pleased with the acquisition metrics of the transaction which demonstrates a purchase price below replacement cost, providing a solid basis to increase rents” says Stirling. “Furthermore, the capital value, on a rate per sqm of NLA basis, is 71% and 40% lower than recent transactions of grade B office buildings in Parramatta and Epping respectively”.
Stirling’s investment strategy focuses on commercial properties within key strategic markets, with strong occupier demand and low levels of vacancy which are well positioned to benefit from active asset management and government infrastructure investment.
About Stirling Property Funds
Stirling comprises a team of highly involved business executives with proven experience, at senior levels, in the commercial and residential property, finance and town planning professions. Stirling draws on the combination of funds management skills and success from the former Centuria Property Funds, Bankminster and M & G Real Estate executives together with the outstanding residential property development achievements of the Legacy Property team.
Contact Stirling Property Funds Level 45, 19–29 Martin Place, Sydney
Matthew Hyder 0439 373 010
Matthew Coy 0412 557 224
Scott Girard 0410 528 893
David Govey 0412 475 311
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