Yuhu Group Australia has today confirmed that it has entered into a $380 million agreement to acquire the iconic Bakehouse Quarter at North Strathfield in Sydney’s inner west.
The major commercial and retail precinct – on the former site of the historic Arnott’s factory and warehouse – will form a significant part of the company’s medium to longer term investment strategy.
Yuhu Group CEO Eric Roozendaal said the Bakehouse Quarter, which takes in six hectares, would be an exciting addition to the company’s growing property portfolio.
“This acquisition fits neatly into our longer-term investment strategy which centres on acquiring high quality assets with existing cash-flow income streams through strong retail and commercial tenancy, combined with future development upside,” he said.
The Bakehouse Quarter is uniquely located near two railway stations – Homebush and North Strathfield – as well as the new Westconnex Motorway, offering convenience for residents and visitors alike.
“We see this as an outstanding long-term investment proposition because through a master-planning process there is scope to develop the type of contemporary hub or town centre that reflects our corporate values of seamlessly building better communities,” Mr Roozendaal said.
Ben Kirby of Ray White Commercial, which helped negotiate the deal said: “We are very pleased with the outcome. It provides an outstanding opportunity for the vendors to capitalise on the work they have undertaken to the property over the past 20 years and the ongoing strength of the Sydney market.
“The purchasers were drawn to the fact they have been able to secure a strong performing asset on an incredibly rare, six-hectare landholding in the heart of Sydney which has excellent long-term potential.”
This year as a company, Yuhu Group has already made more than half-a-billion-dollars in new investment commitments around Sydney and the completion of the Bakehouse Quarter transaction would see the value of our property portfolio exceed $800 million, said Mr Roozendaal.
Earlier in 2017 the company acquired the Pymble Corporate Centre in an $81 million transaction and followed this up with the $23 million acquisition of an office and retail property in Northbridge, both on Sydney’s sought-after upper north shore.
Yuhu Group, the owner of the Eastwood Shopping Centre, also has a development application in final assessment for a transformative, mixed use project which would represent more than $400 million of capital investment.
To provide an indication of the job-creating potential of Yuhu Group investments, it is estimated that the Eastwood project alone would create 1,000 jobs during construction and more than 1,500 after completion.
The construction phase is also underway on the company’s $250 million North Sydney residential redevelopment, The Miller, with 85 per cent of apartments now sold. Completion is scheduled in the first half of 2019.
Mr Roozendaal said Yuhu Group would continue to be active in identifying new investment opportunities in NSW as the company was extremely optimistic about the future.