In 1998 Precision Group, after predicting a significant resurgence in the commercial property market, embarked upon the purchase of Customs House in Port Adelaide for $11 million. A lucrative acquisition at the time obtained at a 9.5% yield.
Similarly, but on a much larger scale, the Brisbane commercial market has seen a major upswing over recent years and as such in 2003 and 2004 the Precision Group purchased two commercial properties, being:
• 144 Edward Street for $44.65m at an 8.5% yield from the DB Reef Trust; and
• 160 Ann Street for $49m at an 8% yield from Zurich Insurance (this property since sold to the Investa Group on a swap deal).
At the time these properties were leased at rates per sq metre of approximately $200. The Brisbane market is now delivering rates per square metre of over $550.
In March 2007, Precision Group purchased the Sydney Water Building in Chatswood on the basis of it having vacant possession. Precision intends to refurbish this property and release the property to the market in 2008. It will then be known as Metro Chatswood House.