The largest property contained in the near $90 million Quintessential Equity portfolio, a commercial office building in Sydney’s Parramatta, has already been snapped up by an offshore group.
The five-asset Quintessential portfolio, put on the market in late 2013, will be carved up among a range of buyers following strong investor interest in Australia’s surging commercial property market. Colliers International, along with conjunctional agents, are handling the sale, but all parties declined to comment when contacted. Quintessential was unavailable for comment.
The offshore Hilti Group has bought 87 Marsden Street in Parramatta, one of the two office properties in the portfolio, for about $33 million on a yield in the low-8 per cent range according to industry sources. The 6659-square-metre office building is located on a prominent corner close to the Parramatta interchange and Westfield shopping centre. Tenants include Shine Lawyers and the NSW state government. Colliers’ Gavin Bishop, John McCann and Tim Russell and Knight Frank’s James Parry and Wally Scales brokered the deal.
Separately, the acquisitive Primewest, a wholesale property syndicator and developer, is in due diligence on two other assets in Adelaide and Victoria for about $22 million combined, sources close to the negotiations said.
These include a 9095-square-metre fully leased industrial asset in Melbourne’s east at Noble Park through Colliers’ Tony Iuliano. The group is is also running the ruler over a 15,520-square-metreindustrial building in Port Adelaide in South Australia, about 14 kilometres south of the CBD, through CBRE’s Chris O’Brien.
Quintessential, a boutique property fund manager, elected to sell almost 40 per cent of its real estate and return profits to its investors last year. Director Shane Quinn said in September that the market was “very strong” for industrial and office assets. The entire portfolio, which has 68 investors in four separate funds that hold the five properties, has an average lease expiry of 5.7years.
The two remaining properties in the portfolio include an office asset in Sydney’s Lane Cove and another industrial property in Dandenong South in Victoria.