The property was acquired in June 2008 for $11.55million, located in a residential / retail precinct and had rezoning potential. EG’s strategy was to rezone the site from industrial to business, allowing residential.
EG leased the asset to generate short term rental income.
EG successfully rezoned the site from Industrial 3 to Business 2 zoning, which permits residential use.
The property was divested in January 2013 for $15.3 returning a 14.7 p.a. IRR to investors.