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North Sydney building sells for millions

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The Australian subsidiary of the globally renowned Shenzhen Yuhu Investment Group Company Limited has purchased a 15-storey office building located in North Sydney. 

The property at 20 Berry Street fetched a price of approximately $60 million at a yield of 7.25 per cent. 

Currently 49 per cent of the office tower, which has a net lettable area of 9,723 square metres, is leased to the international engineering company SMEC. The remaining space is currently occupied by a number of industry groups. With at least 110 car parking spaces, the property has excellent investment feasibility

Head of Private development of company Velement Pty Limited Robert Magid nominated Knight Frank for the sale.

The sale was negotiated by the real estate company's Director of Institutional Sales, Tyler Talbot, and Head of Asian Markets, Dominic Ong.

Mr Talbot said there was strong interest from both local and overseas investors owing to its great location, strong earning potential and the possibility of future re-development.

He further added that the area also offers excellent prospects for savvy investors.

"The demand for investment-grade properties on the North Shore continues to increase, with a number of recent transactions taking place. This is a result of increasing investor appetite for quality stock in a supply-constrained market," he added. 

Mr Ong said revenue margins in the Sydney CBD are getting tighter, which is why other areas are attracting interest. 

 "Yields across the North Shore have firmed strongly as investors intensify their search for investment opportunities," he noted. 

This comes at a time when a July 28 2015 article in the Sydney Morning Herald reports supply for office spaces is tightening. 

Date Published: 29 Jul 2015
Category: General News

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