The investment strategy identified at the time of purchase highlighted the opportunity to capture significant rent reversion and value gains when leases expire given the below market passing rents. Also to assess further re-development potential (STCA) as the property’s location and significant site area and zoning provides opportunity to add more office space on balcony areas and on the roof.
Asset management initiatives include obtaining Development Approval for the construction of two additional levels on the roof adding 2,140m2 (68% increase) of additional office space. The Permit has added significant value to the property, and we are delighted to report the independently assessed value of the property has increased to:
- “As Is” – $22,700,000 representing a 19.5% increase to the purchase price 2)
- “As If Complete” – $44,160,000
The cost of the works is estimated to be $15.0 million.