In a very strategic purchase, Arcadia has bought a 50% interest in 52 Goulburn Street, Sydney for $176 million.
Arcadia was established in 2002 by Stephen Newton and Hamish Flett and is one of Australia’s leading boutique institutional real estate investment managers; it focuses exclusively on institutional capital.
The acquisition adds to Arcadia’s already held half share stakes in 680 George Street and in the World Square shopping centre and car park. Mr Flett has reportedly said that the acquisition will increase Arcadia’s total investment in World Square to over 105,000 square metres. This combined parcel would be worth approximately $900 million.
According to Sydney Cityscope, 52 Goulburn Street, also known as Latitude East, is an A-grade 12-storey office building above the single storey World Square Shopping Centre. It has a building area of 23,104 sqm and parking for 210 vehicles. It is fully leased to the Australian Tax Office.
At $176 million the property sold on a passing yield of 4.76%. It last traded when Credit Suisse bought the half share for $117.5 million in 2007.