Propertylink is acquiring a business park in Sydney's Lane Cove Business Park for A$48.0 million.
As part of the deal, the company also entered into a put and call option agreement to purchase for A$8.6 million an adjacent vacant land plot measuring 7,922 square meters.
The purchase price for the 18-20 Orion Road business park reflects a capitalization rate of 7.11%. Sitting on an 8,938-square-meter site, the 9,751-square-meter building comprises nine levels of office space, a lower ground floor with a childcare center, and parking spaces for 342 vehicles. The asset is 88% occupied, with NetCom Wireless and Bupa Dental Corp., the anchor tenants, occupying 45% of the facility.
The business park transaction is expected to close shortly, while the deal for the vacant lot is expected to complete around September 2018.
Due to the proposed acquisitions, Propertylink boosted its debt facility limit by A$40 million to A$340 million and extended by 4.1 years the average maturity profile of the debt facility.
