One of Southern Sydney’s most notable commercial office assets, Taylors House, is being brought to market through Colliers and JLL.
Purpose built in 2001 and predominantly occupied by Taylors College, an affiliate of The University of Sydney, 965 Bourke Road, Waterloo has a lettable area of 11,024sqm and offers a secure income stream in one of Sydney’s most defensive commercial markets.
The building is being sold by the Colliers team of Adam Woodward, Alex McColl, Michael Crombie and James Mitchell, in conjunction with James Barber, Luke Billiau, Mitch Noonan and Kate Low of JLL, on behalf of the vendor, Fortius (part of Growthpoint Properties Australia). It comes with price expectations of $90 million-plus.
“Taylors House presents the opportunity to capitalise on the strong rebound in student migration in one of Australia’s best performing commercial precincts. It benefits from a secure income stream underpinned by an internationally recognised tenant, situated on a large site with flexible mixed-use zoning,” Mr Woodward said.
“Buyers will be attracted to the positive rental reversion and superb location north of Green Square Town Centre. With some large pre-lease deals currently being negotiated within the precinct, Waterloo will prove to be a premium offering for corporate occupiers,” Mr Crombie added.
“Given the asset’s liquid price point and compelling rental upside together with the occupier’s strategic alliance with The University of Sydney, we anticipate the asset will generate strong market interest, particularly supported by the reallocation of capital into social infrastructure assets,” Mr Noonan said.
Taylors College is a leading global education provider that offers pathway programs to higher education. In Sydney, they have occupied the building continuously for 22 years, and deliver the University of Sydney Preparation Programs.
The asset boasts a 5.9-year WALE and is afforded strong underlying land value by virtue of its 4,002sqm site area, three street frontages and Mixed-Use zoning. This offers potential investors future flexibility in the usage of the building, including commercial, residential, retail, education and medical.
Its strategic location north of Green Square is bolstered by new development and an influx of infrastructure projects, including the Waterloo Metro Station, the completed WestConnex access point in Alexandria and $540 million worth of improvements to Green Square by the City of Sydney.
Demand for new and existing office space in Southern Sydney is primarily driven by lower occupancy costs and its proximity to two of Australia’s main international gateways in Sydney Airport and Port Botany, as well as the nearby Sydney CBD and City Fringe. The precinct now has a diverse mix of commercial occupiers, as many choose to relocate from the Sydney CBD and City Fringe where they can occupy a creative space at a more affordable rent.
Australia is undeniably an attractive destination for students from all over the world, with a recently conducted survey by IDP Education ranking it as the second most desired location after Canada. The return of international students to Australia has surpassed initial forecasts, while population growth is expected to reach 2 percent in 2022-2023, according to the 2023/24 Budget, indicating a net migration flow of approximately 400,000 individuals.
A 100% freehold interest in Taylors House is being offered for sale via an International Expressions of Interest (EOI) campaign closing Thursday, 13th July 2023 at 2:00pm AEDT.
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