McCullough Robertson’s Sydney Real Estate, Finance and Corporate teams proudly advised LDR Capital, the real estate funds management platform of the Lederer Group family office, with its acquisition of the landmark 23 Furzer Street asset in Woden, Canberra – a 46,000sqm, 10-storey A Grade, campus style office tower boasting unrivalled sustainability credentials, including 6 star NABERS energy and water ratings. Purpose built for and fully leased to the Commonwealth Department of Health, Disability and Ageing for the next decade; the building delivers exceptional income security underpinned by the Australian Government’s AAA credit rating and will form an integral part of our client’s property portfolio. The value of the transaction, being $305 million, reflects strong investor appetite for premium, future proofed Government leased assets in Canberra’s tightly held office market. The transaction also marked the launch of LDR Capital’s inaugural wholesale property fund, the LDR Health HQ Fund.
Our Real Estate team, led by Eva Vicic, undertook comprehensive property, environmental and technical legal due diligence, ensuring holistic understanding of this nationally significant asset. This included negotiations on the contract for sale with Mirvac Limited, addressed complex issues around responsibility for committed capital upgrade works and tenant incentives, managed the ongoing relationship with the high profile tenant, and advised on the environmental risks associated with potential underground fuel tanks on the property.
Anthony Rotili led our Finance team advising on the provision of a $160 million senior acquisition facility from Commonwealth Bank of Australia, including finance documentation negotiation and transaction management through to financial close.
Our Corporate Team led by Natalie Kurdian advised on the investment fund establishment and $165.6 million capital raising component of the transaction.
This transaction underscores the strength of the asset and demonstrates the value of a coordinated, multi-disciplinary approach to complex property investments.
