CHALLENGER Financial Services has made $85 million from the sale of its George Street Cinema complex in the Sydney CBD.

Private investors Coombes Property Group has purchased the 505 -523 George Street property, which includes a seven-storey cinema building, and sits on a 4,300 square metre block. The sale price is believed to translate to an approximate 8.25 per cent yield.

Major tenant Greater Union has six years left to run on a lease (and then a 15-year option) – but the site is eventually expected to make way for a village of apartment towers and offices, according to the AFR.

According to a Challenger financial report, the group paid $68.5 million for the asset in July 2000.

Source: Real Estate Source