Our client was seeking a B grade building with a view to improve capital value through rent revisions. Rose & Jones purchased a 14 level freehold building on Clarence Street Sydney, on the western corridor of Sydney CBD. Although not an “A Grade” location at the time, Rose & Jones uncovered that Barangaroo was to begin development soon and this would impact the western corridor of the CBD. We purchased on a 6.5% yield for $18.28m. Our clients CAPEX was $1m over the following 2 years with lift upgrades and minor cosmetic works, this in turn increased the rents circa 25%. In 2015 an unsolicited offer of $30m was received. By engaging Rose & Jones the client was able to make an informed decision on location, investment, future developments and future opportunity. The client re-engaged with Rose & Jones for a fourth time in 2016 and purchased an off market freehold building for $20m in a prime location of the Eastern Suburbs of Sydney with huge residential opportunity to be realised in the future.
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