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CR Kennedy buys new Sydney Building Australian Financial Review 10/02/15
CR Kennedy, a major importer and distributor of photographic, CCTV and medical equipment, has acquired an office building in Sydney's south for $35 million.
The seven storey property will house the group's national headquarters. The off-market transaction was handled by CBRE's Olivia Skinner on behalf of vendor Capital Corporation – a development and investment company.
Capital Corporation director Steve Grant said the company would now look at more development opportunities in the area, in addition to its existing sites. It bought the site in 2011 for $29 million. Since then, it subdivided the property with the front portion developed into a 123 room hotel pre-leased to Adina and due for completion next month.
"We're extremely pleased with the outcome and will be utilising the funds to develop other current projects, in addition to continuing to looking for future opportunities," Mr Grant said.
The 8832 square metre building is currently 100 per cent leased to well known tenants including DHL, Tyco and Hansen Yuncken and also JLL's South Sydney office. The acquisition provides the CR Kennedy with an income producing asset that will also accommodate its headquarters in circa 1600 square metres of space, which is due to be vacated by Avis.
CR Kennedy had been looking for another building to relocate to after selling its own nearby site on Coward Street to a residential developer. There is strong demand for residential sites in Sydney at the moment, particularly in the city's southern suburbs, Ms Skinner said.
"The residential rezoning that has occurred in South Sydney has created significant demand from owner occupiers and office tenants that have been displaced but want to remain in the area given the increased amenity, access to transport and generous parking ratios."
"For CR Kennedy, the acquisition of 15 Bourke Road has achieved their dual aim of keeping their offices in Mascot, whilst also finding an asset that was income producing," she said.
The Australian Financial Review
*The article in the AFR is incorrect in that our head office will remain in Melbourne. The article refers to our Sydney Branch office.