The Realside 170 Pac Hwy Fund (Fund) has been established to acquire a 100% interest in a Sydney metropolitan freehold office building located on the fringe of the St Leonards office precinct.

170 Pacific Highway (Property) is a 100% leased, substantially refurbished, office building with a weighted average lease expiry of approximately 3.9 years, diversified across multiple tenants. The property has 116 car bays which is an unusually high car bay ratio of 1 bay per 38 sqm of office area, excellent natural light from windows on three sides, and elevated outlooks including harbour and CBD views to the south.

Identified by the NSW State Government as a priority precinct, the area will undergo major gentrification over the coming years, underpinned by its new metro station in 2024. Currently supported by the existing St Leonards Train Station, the suburb boasts a highly accessible and central location between the commercial hubs of Chatswood, North Sydney and Sydney CBD. St Leonards is known for its thriving office market and world-class healthcare facilities.

The office tenants at the Property did not require rental relief during the recent Covid’19 shutdown and all tenants have now substantially re-occupied their tenancies. This demonstrates the stark difference between suburban office tenants and their CBD counterparts. Post Covid’19, we expect suburban markets to continue to perform well given lower rental levels, higher car park ratios and generally lower scale enabling employees a quick and efficient transition into their own office environments without spending long periods in crowded lift lobbies.

The Property has a Development Approval to add an additional two storeys of office space. The potential development will add a further 1,670 sqm of office Net Lettable Area (NLA) to the building featuring floor to ceiling height glazing along each side of the offices providing excellent natural light and views. Notwithstanding any development is subject to further feasibility analysis post settlement, and subject to market conditions, it does represent exciting upside investment performance potential. Further work on the feasibility and constructability of the additional floors will occur post settlement, and will be subject to market conditions, however it represents exciting upside investment performance potential.

With an initial Fund gearing level of 55% the Fund will be targeting an investor distribution of 7.5% (year 1) with a total IRR target of 10.6% over an anticipated 5 year initial investment term (excluding the development of any additional office floors).

This offer is only available to persons who qualify as wholesale clients (as defined in section 761G(7) of the Act) or sophisticated investors (as defined in section 761GA of the Act) (collectively, Qualifying Investors). The Trustee will not issue Units in the Fund to a person unless it is satisfied that the person is a Qualifying Investor. For a copy of the information memorandum and application form email us at [email protected].

The offer will close on Friday 4th September 2020. If you would like to invest we would encourage you to forward your completed application at your earliest convenience.