FKP sells 465 Victoria Avenue, Chatswood to Hines REIT

FKP Property Group has sold its 15-level A-grade commercial office building at 465 Victoria Avenue, Chatswood for $92 million prior to incentive adjustments.

The sale to Hines Global REIT represents a $2.5 million premium to FKP’s 30 June 2012 book value.

Its reflects a passing yield of 7.79%.

FKP Property Group acquired Vero Tower, as it was then known in August 2007, for $98 million. The purchase price represented a price per square metre of $6,465 and initial passing yield of 7.2%.

The building first sold in 1998 for $78 million and then in 2004 for $86 million.

The A Grade building was purpose-built for insurance group Royal Sun Alliance in 1995.

The building is situated close to Chatswood Interchange, which services about 70,000 commuters per day.

The US property giant Hines last year looked at buying Civic Tower in Sydney’s central business district for about $130 million but it did not proceed.