Cumberland Opportunity Fund

88 Cumberland Street, The Rocks, NSW

Property Description

88 Cumberland Street comprises 4,675.5 sqm of office space across five-levels, as well as on-site basement car parking, within a 6-storey commercial office stratum. The Property is positioned in the heart of The Rocks, Sydney’s premier tourist precinct and the historic area of Sydney’s city centre. The building offers views over The Rocks historic precinct, the Sydney Opera House, Circular Quay and Sydney Harbour.

Investment Rationale

The Cumberland Opportunity Fund acquired 88 Cumberland Street in July 2014 for a purchase price $26.35 million. Along with the existing use as a premium office building, the Property had a number of potential alternative exit strategies, including potential conversion to residential, a boutique hotel, individual commercial strata office suites or amalgamation with the adjoining site. After a period of approximately three years, the building was sold off-market to a Melbourne-based syndicator for a price of $52.6 million.

Key Fund Stats

Fund StatusProperty Sold and Fund Closed
Acquisition Price$26.35m (July 2014)
Divestment Price$52.6m (April 2018)
Average Distribution Yield (% p.a.)9.60% p.a. (paid quarterly)
Investor Return on Equity185%
Investor Internal Rate of Return34.3% per annum