A property fund created by Goldman Sachs and Propertylink Group has sold a 6,204sqm office asset in Sydney for AUD71m (€43.7m).
Propertylink said Propertylink Enhanced Partnership (PEP) is selling 80 Mount Street, North Sydney to an undisclosed buyer.
The PEP fund bought the asset for $36.7m as part of the acquisition of the Denison Portfolio in August 2016.
Propertylink has a 25% co-investment in the PEP fund with Goldman Sachs holding the majority interest of 75% stake.
Following the sale of 80 Mount Street, the fund comprises of 8 office and industrial assets.
Propertylink’s CIO, Peter McDonald said: “Since the acquisition of 80 Mount Street, we have deployed a targeted capital expenditure program to refurbish and upgrade the building.
”Most significantly, however, we have undertaken extensive leasing activity across 55% of the building area, driving occupancy from 75% to 92% over the last two years.”
Propertylink’s managing director and CEO, Stuart Dawes said: “Our demonstrated success in delivering value across our investment management platform continues to underpin our excellent relationships with existing and new global institutional investors, who seek opportunities in the Australian real estate market.
“This has positioned the business for solid growth in FY18, with a number of initiatives to deliver growth in external funds well advanced.”
The PEP fund’s strategy is to acquire a diversified portfolio of assets with strong underlying cashflows that also present upside potential.