Although not part of the original investment strategy, Tipalea Partners has sold its superlot amalgamation of 1.1 hectares at 23 and 29 Bourke Road Alexandria for $69.5m to a private investor in August 2018.
“Off the back of our research into the transformation of Alexandria and the tightness of the CBD leasing market and the likely flow-on effect to city fringe markets, Tipalea amalgamated the sites over the past 12 months at a cost of $38 million which has delivered strong returns to our investors.” Scott Spanton, Chief Executive Office of Tipalea Partners, said.
“Being only 400m from Green Square railway station and with development potential for over 25,000m2 of office space, 23 and 29 Bourke were the cornerstone of our Generation 3 funds. Despite not having turned a sod of soil, they have delivered an IRR for us and our investors of 32% p.a. and 71% p.a. respectively” he said.
Substantial institutional interest in the sites started after Tipalea lodged a DA for a market leading, next generation designed office building of 9,300m2 at 29 Bourke Road.
“We are incredibly pleased that the purchaser shares our vision for the precinct and intends to develop 29 Bourke Road as currently designed by Tipalea Partners. This new development will set new benchmarks for Alexandria, delivering CBD quality office space at significantly lower occupancy costs in a more edgy, boutique setting,” said Scott.
The transaction was brokered by Michael Crombie of Colliers International, as was the initial purchase of 29 Bourke Road.
29 Bourke Road was purchased for $13.4m in June 2017 and was sold for $31.0 in August 2018.
23 Bourke Road was purchased for $24.5m in March 2018 and sold for $38.5m in August 2018.