Commonwealth Property Investment Fund buys 1 York Street

Commonwealth Property Investment Fund (CPIF) has exchanged unconditional contracts to buy 1 York Street, Sydney for $74.65 million at a forecast yield of 8.7 per cent for the first year.

The acquisition will be undertaken by CPIF’s Office Sector One bringing gross assets in this sector to $545 million and total fund assets to $759 million.

1 York Street is a landmark office building in Sydney’s CBD with major tenants including Pannell Kerr Foster, Tubemakers Australia, Michael Page International and Howard Smith Industries.

The 22 level building comprises 18,400 square metres of office space, basement parking over four levels for 127 cars and typical floor plates of 860 square metres.

Fund Manager, Mr Graham Pearson, commented that "the purchase will be predominantly funded by debt, increasing CPIF Office Sector One’s gearing to 22 per cent of gross assets."

CPIF’s current gross total assets of $759 million comprise $545 million in Office Sector One (opened July, 1996), $56 million in Industrial Sector (opened May 1998) and $158 million in Retail Sector (opened December 1998).