RDB Investment Trust

Reader’s Digest Building
26-32 Waterloo Street, Surry Hills

Property Description

The Reader’s Digest Building is an iconic commercial building with three street frontages, bounded by Cooper, Waterloo and Adelaide Streets in Surry Hills. The 7,055sqm building consists of three levels of commercial space, a small mezzanine level, rooftop garden, ground floor retail and on-site car parking.

Investment Rationale

The Property was acquired to leverage the ongoing urban renewal in the surrounding area of Surry Hills, including new office development, larger scale residential apartment towers and new infrastructure (such as the light rail). The Property occupies a large 3,971 sqm site, offering large open-plan floor plates and the potential of future redevelopment.

Over the period of ownership the key value-add was to improve the leasing profile, which involved a new lease to Cellarmasters (a 100% subsidiary of Woolworths) with a term of 8+ years.

Key Fund Stats

Fund StatusProperty Sold and Fund Closed
Acquisition Price$30.0m (March 2014)
Divestment Price$52.6m (December 2017)
Average Distribution Yield (% p.a.)9.16% p.a. (paid quarterly)
Investor Return on Equity 139%
Investor Internal Rate of Return 29.2% per annum