After receiving a very strong unsolicited offer for its flagship project, Tipalea Partners has sold 29 Bourke Road, Alexandria to a Sydney based private developer for $31m.
Tipalea had recently received development approval from the City of Sydney for a 10,000m2 office complex on the 5,033m2 site.
Having bought the property in May 2017 for $13.4m, the sale delivers strong returns for Tipalea’s investors who have received an IRR in excess of 70% p.a. and an equity multiple of almost 2.4x.
Scott Spanton, CEO of Tipalea Partners remarked that “whilst the development of this project was to be the cornerstone of our third generation of funds, the returns we have been able to secure without any development risk far outweighed any other considerations. We are also very pleased that the purchaser shares our vision and belief for the emerging precinct of Alexandria and wish them well.”
Both the original purchase and sale transactions were negotiated by Michael Crombie of Colliers International.