Urban renewal company URB Investments has purchased a high-profile Penrith CBD property as a seed investment ahead of listing on the ASX.
The Australian Financial Review reported that the company has arranged for three property purchases worth more than $59 million – including the Tattersalls Centre at 510-533 High Street - as seed investments.
All three properties will be purchased jointly with Washington H Soul Pattinson, which is expected to be a cornerstone investor in the listed company.
The 6,400 square metre property is located on prime real estate on what is considered the one of the “four corners” of Penrith’s CBD, at the intersection of Station and High Streets.
“Soul Pattinson and URB believe that Penrith is set to undergo a shift in land use by virtue of infrastructure projects over the next five years,” Tom Millner, director of Contact Asset Management which manages URB Investments’ portfolio, told the Gazette.
“Over the longer term, Soul Pattinson and URB considers that Penrith has the potential to benefit from its proximity to infrastructure … and ‘city deals’ projects.”
The centre’s current tenants would remain in place and, while redevelopment of the building was not immediately being considered, Soul Pattinson and URB were keen to work with council to provide more opportunities for the community, he said.
“While Soul Pattinson and URB will be looking to target assets where there are identifiable drivers of future revaluations it is important that these are also coupled with sustainable income; one of the most attractive aspects of this property on High Street, Penrith is the immediate yield that is attached,” Mr Millner said.
“Local council is progressing changes to the planning controls within the city centre to accommodate ‘city deals’ projects and while Penrith is a great place to live already, we’d like to help Penrith become a more vibrant city, by making it a great place to also work and provide more opportunities for the community.”
A land sale contract is due to complete on March 31, Mr Millner said.