Northpoint case study
| Property Type | Office, retail and hotel |
| Address | 100 Miller Street, North Sydney |
| City / submarket | North Sydney / office |
| Construction | 1977 |
| Rental area | 35,162sqm |
| Purchase price (December 2013) | $139.35 million (50% interest) |
| Sale price (September 2019) | $300 million (50% interest) |
| IRR | 15.5% |
Opportunity
- Acquired Northpoint Tower in December 2013 for $279 million (100% interest), leveraging off a competitor failing to complete the purchase
- Transaction undertaken with an institutional partner, Redefine Properties, having a 50% interest
- Attractive acquisition metrics of 8.7% passing yield and $7,849 per sqm
- Opportunity to significantly reposition asset, with last refurbishment in 1997
Key Actions
- Secured development approval for:
– A retail, dining and leisure precinct, including a rooftop bar; and
– An eight story, 187-room hotel in a new attached building - Construction managed with tenants in situ and constraints of the site being located between major roads
Results
- Project commenced early 2016 and reached practical completion in March 2018, on budget ($137.9 million) and on time
- 4.5-star, Vibe Hotel, with conference facilities and swimming pool opened Easter 2018
- Rooftop bar sitting atop a new four-story glass structure handed over to operator in August 2018
- Early Light International acquired Redefine Properties’ 50% interest for $300 million in August 2018
- Cromwell’s 50% interest sold to Early Light for $300 million in September 2019
- Cromwell equity IRR: 15.5%
