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Roxy-Pacific Holdings and Tong Eng Group, via their 50:50 joint venture company Feature-Roxy, have agreed to sell 117 Clarence Street, a freehold commercial building in Sydney for AU$153 million (S$154 million).
The joint venture company purchased the 14-storey building for AU$81 million in 2016.
“The divestment of 117 Clarence Street closely follows the sale of 59 Goulburn Street, both prime commercial buildings in Sydney had contributed healthy recurring income before they were divested at a good price,” said Roxy-Pacific executive chairman and CEO Teo Hong Lim.
“We hope to replicate this model and extend our investment track record in the near future, recycling the capital from the sale of 117 Clarence Street into other yield-accretive investments to enhance shareholder value.”
Acquired in 2014 for AU$90.2 million, 59 Goulburn Street – which is Roxy-Pacific’s first commercial investment in Sydney – was sold for AU$158 million last year.
The company expects the sale of 117 Clarence Street to positively contribute to its financial performance for the financial year ending 31 December.
Teo Tong Lim, group managing director of Tong Eng Group, said the sale “reflects an exceptional return on investment for the group”.
Tong Eng Group first ventured into Australia in 2015, with the acquisition of the Harley Davidson building in Melbourne for AU$38 million, which subsequently sold for AU$61 million last year.
Other Melbourne office assets subsequently acquired by the group and Teo’s private family vehicle include the Grade A office building at 5 Queens Road, 8 Lakeside Drive, Burwood and 312 St Kilda Road in its second joint venture with Roxy-Pacific in Australia.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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