Leighton Properties sells North Sydney property for $90.75 million

A.J. MOIR
Company Secretary

Purchase of 80 Pacific Highway, North Sydney

Issue Date: 24 April 2001
Issued by: Leighton Properties Pty Limited

Leighton Properties’ landmark commercial development at 80 Pacific Highway, North Sydney has been sold to Investa Property Group for $90.75 million with contracts now exchanged.

The property is to be purchased by Investa Property Trust (50%) with the balance being acquired by the Investa North Sydney Property Trust, a new syndicate offering with the equity raising being underwritten by Westpac Banking Corporation. The $90.75 million contract price for the property equates to a 7.5% yield before acquisition costs.

The 14 storey, 13,695 square metre commercial building is fully leased to Cisco Systems - who have taken 11,500 square metres for an initial eight-year lease - with the balance taken up by Siebel Systems.  There are also 7 fully leased retail outlets at street level with one minor vacancy and 87 basement car spaces.

Andrew Junor, General Manager Investments said….”We are pleased with this quality acquisition and the structuring of this transaction highlights the strength of the stapled structure and the ongoing relationship Investa has with its former parent Westpac.”

Mark Gray, NSW Manager, Leighton Properties said there had been strong interest in the property from institutional investors who sought to capitalise on the strong lease covenants and long term investment growth of North Sydney.  

Leighton Properties are proceeding with their joint venture development of 100 Pacific Highway, North Sydney.

The high quality building was completed in May 2000 with the commercial component being fully leased prior to completion.

Acting for the sale were Tom Southern of CB Richard Ellis and David Harrison of FPD Savills.

Contacts:
Mark Gray
Leighton Properties Pty Limited
Tel:    9925 6885
Fax:    9925 6152

Andrew Junor
Investa Property Group
Tel:    8226 9305
Fax:    8226 9494