Critical infrastructure investors coupled with Offshore HNW interest drove competitive tension in the sale, highlighting strong demand for secure, government-leased assets with redevelopment potential.
Colliers has successfully brokered the sale of Mascot Police Station at 965 Botany Road, Rosebery for $29,127,000 representing a super tight yield of 4.56% on behalf of EG Funds. The asset, securely leased to the NSW Police Force, attracted significant interest from a diverse pool of critical infrastructure funds and high-net-worth investors, culminating in a highly competitive process that delivered an exceptional result.
The property comprises a purpose-built commercial facility with 2,888sqm of net lettable area on a 4,152sqm site, leased to AAA-rated government tenant, NSW Police Force, with a WALE of 5.5 years. This secure income stream, backed by a government tenant, offered immediate stability and strong tenant retention prospects.
After acquiring the asset in April 2020, EG Funds undertook a targeted ESG-focused capital works program, resulting in a substantial uplift in the building’s sustainability performance, ultimately elevating the asset’s NABERS Energy rating from 3.5 to 5.5 stars.
Matthew Meynell Colliers’ Managing Director, Office Capital Markets & Investment Services, said, “We received 180 enquiries and eleven formal offers. This level of engagement underscores the appetite for assets that combine secure income with long-term development upside in prime locations.”
“While the eventual purchaser was domestic, the presence of Offshore high-net-worth capital was instrumental in creating competitive tension throughout the process, delivering a premium result for our client. This demonstrates Colliers’ ability to unlock a broader buyer pool and drive exceptional outcomes.”
Beyond its current use, the site presents significant future value-add potential. With a maximum building height of 14 metres and flexible E1 Local Centre zoning, the asset is well suited for redevelopment into a mixed-use residential or build-to-rent project (STCA). Its zoning allows for a broad range of uses, including retail, residential, and commercial, making it a prime candidate for repositioning as part of the broader urban renewal sweeping through South Sydney. The property’s expansive 94-metre frontage and dual access further enhance its development appeal, offering design flexibility and strong street presence.
Located just six kilometres south of the Sydney CBD, Rosebery has rapidly emerged as one of the city’s most strategically important mixed-use precincts. Once defined by its industrial character and proximity to Sydney Airport, the suburb has undergone a dramatic transformation, evolving into a dynamic urban hub supported by major infrastructure, key transport links, and a growing residential population.
Justin Rosenberg, Colliers Director, Industrial & Logistics, commented, “Rosebery’s future as a mixed-use precinct is incredibly bright. The area is benefiting from sustained infrastructure investment and increasing demand for integrated urban living. This asset is perfectly positioned to capitalise on that trajectory, whether held for long-term income or repositioned to unlock its full development potential.”
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