A pair of assets incorporating the Newcastle Family Law Courts have been sold to Sydney-based investor and funds manager Marprop for $35.3 million.

CBRE’s Scott Gray-Spencer and Jack Morrison negotiated the sale of 51-55 Bolton Street and the adjoining 61 Bolton Street - home of the Newcastle Family Law Courts - in conjunction with the Commercial Collective’s Matt Kearney.

The buildings were sold on behalf of private syndicator Eagle Property Group after it secured a new 15-year lease to the Federal Government across 56 per cent of the total space.

At a glance: 

• Sydney-based investor and funds manager Marprop has snapped up neighbouring Newcastle buildings for $35.3 million.
• CBRE’s Scott Gray-Spencer and Jack Morrison negotiated the sale of 51-55 Bolton Street and the adjoining 61 Bolton Street - home of the Newcastle Family Law Courts - in conjunction with the Commercial Collective’s Matt Kearney.
• They are 100 per cent occupied and offer a Weighted Average Lease Expiry of 8.7 years, with net passing income meaning the sale was transacted an initial yield of 6.5 per cent.

The Bolton Street buildings have a total lettable area of 6,142sqm and include 85 car spaces.

They are 100 per cent occupied and offer a Weighted Average Lease Expiry of 8.7 years, including the Federal Government lease for the Newcastle Family Law Courts.

Mr Kearney said Eagle Property Group acquired the buildings when there were "just a few years left" to run on the existing Federal Government lease and applied its abilities to re-setting the tenancy.

Other tenants include the NSW State Government’s Legal Aid department, WSP, Braye Cragg Solicitors and DXC Technologies.

Source: CBRE

Based on the net passing income, the sale was transacted an initial yield of 6.5 per cent.

Mr Gray-Spencer noted there with strong demand for investment-grade assets underpinned by long-term government leases, adding that the evolving Newcastle CBD location had been another buyer drawcard.

"There are several development projects taking place in the immediate vicinity, including Doma Group’s $200 million The Store project," he said.

"The buildings also carry the potential to add value to the existing assets through repositioning, cosmetic refurbishment and the potential expansion of the existing structures onto additional land at the rear."

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