News: Stockland sells Sydney property for $56M

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Stockland (ASX:SGP) has sold 175 Castlereagh St, Sydney, to Centuria Property Funds for $56 million.

 

The property developer says the sale was more than its book value in December 2012 and is in line with its strategy to optimise security holder returns by actively managing assets and recycling capital when expected risk adjusted returns are below its hurdle rates.

 

The building includes 13 levels of offices, with the majority occupied by the NSW Government under renewed leases.

 

Stockland Group Executive John Schroder says the company renegotiated several leases before the sale to maximise the value of the asset.

 

Initial yield is 7.7 per cent against the net proceeds of the sale.

 

Stockland reported a net loss of $147.1 million for the first half of the current financial year.