BEN WILMOT Commercial property reporter, Sydney
The Yuhu Group, which is led by billionaire Xiangmo Huang, has snapped up another site on Sydney’s north shore, buying an office and retail property in Northbridge for $23 million.
The group has been on the expansion trail and last year bought the Pymble Corporate Centre for $81m and has been advancing its other developments in the area.
The latest purchase is a three level office and retail property, with basement parking for 55 vehicles, and could be destined for a longer-term overhaul as a mixed use project including apartments.
The site adjoins Northbridge Plaza and sits in an existing local centre that has significant development upside.
The complex has a net lettable area of 2542 sqm and sits on a 1,794 sqm site and was acquired as a going a concern. Tenants include Australia Post and Australian Dental Lab and it has a fully leased net income of $1.31m.
annual increases, while The property will show strong fixed rental growth, with most leases having 4 per centYuhu formulates longer-term plans.
Yuhu Group (Australia) chairman Mr Huang said the company was pleased to add another property in a blue chip lower north shore location to its portfolio and it reflected the company’s diversified investment strategy.
Mr Huang said the company was always on the lookout for high quality commercial property with solid returns and strong capital growth prospects in addition to sites with mixed-use development potential over the medium to longer term.
The Chinese billionaire, who was one of Australia’s largest individual political donors, last year called for direct contributions to politicians to be banned and criticised federal treasurer Scott Morrison’s handling of the Ausgrid power sale under which a winning Chinese-dominated bid was rejected on national security grounds.
The Sydney-based investor, whose other holdings include Eastwood Shopping Centre in the northwest and The Miller Development in North Sydney, has a positive outlook for the property industry, saying the Australian environment and its free society will continue to be a magnet to investors and immigrants.
The property was sold by a group of private investors behind 115 Sailors Bay Rd Pty Ltd which bought the complex from Centuria for $13.365m in 2014.
The deal was brokered by Neil Cooke, Stuart Cox and Graeme Russell of Savills.