Project de-risking (Sydney metro)

Matt assisted the Commonwealth Bank Property Fund — a REIT — who owned a 100% interest in a development site in Sydney Olympic Park, to refine their development design in order to gain maximum flexibility, before going out-to-market to identify and attract future tenants.

Scope of Project:

Commonwealth Property Office Fund (CPA) owned a 100% interest in a development site on Herb Elliott Avenue, Sydney Olympic Park, with the Fund’s final ownership being subject to a tenancy pre-commitment being met before a sunset date. The site was capable of hosting a 23,000 sqm office building. The role included refining the approved development design to gain maximum flexibility and then marketing the leasing opportunity to major tenants.

Outcome:

Matt Spillane identified that the sunset date for tenancy pre-commitment represented a risk to CPA. He subsequently set in motion a plan to re-risk the project, sourcing a joint venture partner. Within six months, he negotiated a partner arrangement with a suitable company and negotiated a sale for CPA at a premium to book value.