Fund Summary
The Forza 117 Clarence Street Fund is an unlisted property fund which acquired a refurbished 12,510m² commercial office building with 26 basement car parks in Sydney CBD. With existing 5 star NABERS rating and a pathway to 6 star NABERS energy rating this is an attractive proposition to tenants seeking leading sustainability targets.
Purchased off market for $130,000,000 or $10,392m², the building is currently 100% occupied with a WALE of 3.6 years and resides on a freehold land parcel of 1,283m² with frontage to Clarence, Erskine and Kent Streets. This triple street frontage facilitates excellent natural light and floor plates that are easily dividable with minimal NLA loss.
Sydney’s CBD is geographically constrained and remains Australia’s most sought-after commercial property location. Historically it is rare to acquire a fully occupied Sydney CBD asset on an 8.6% yield at its underlying land value, particularly in a location like 117 Clarence Street, which affords excellent proximity to public transport including Wynyard Station 160m away as well as access to recently installed tram on George Street and only 2 blocks to the major Carrington Street bus terminal.
117 Clarence Street’s strong sustainability credentials and proximity to public transport are fundamentals that will help drive its investment performance.
The building has a typical floorplate size of 1,015m² and a central lift core, providing work space flexibility appealing to a broad range of tenants. Presently, the Property is majority occupied by Property NSW with a range of tenants including Air China, Canon and Sustainable Energy Solutions filling the additional tenancies.
