Hong Kong Based Fund Acquires Accountants House for $21 Million

The historic Accountants House in Sydney’s The Rocks has been nabbed by a Hong Kong-based real estate funds manager, Terraform Capital.  On a $21.05 million deal, the leasehold interest was purchased on a 5.25 per cent yield and was acquired through a 99-year lease from the Sydney Harbour Foreshore Authority. 86 years remains on lease.

The six-storey commercial building at 117 Harrington Street generates a net passing income of $1.1 million. The building’s net lettable area sums at 1402 sq m on a 379 sq m site. Current tenants include CCUBE Financial, Iris Sydney, Artazan Property Group and real investment manager Sumner Capital.

The property benefits from its heritage and location, increasing the company’s number of assets under Sydney management into five, with combined value of more than $500 million. The building is accommodating an increasing tenant demand for creative office spaces. Investors are as well taking advantage of the low Australian dollar and low interest rate environment in the country.

For the record, Accountants House consists of 2 commercial buildings - the original 117 Harrington Street and the three-storey 120 Gloucester Street. The Australian Society of Accountants bought the building in 1952 and eventually taken over by the Sydney Harbour Authority in 2004.

Article and image source: https://www.commercialrealestate.com.au/news/terraform-capital-nabs-the-rocks-commercial-block-for-21-05m-853611/

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