One of Wollongong’s most recognisable commercial buildings has hit the market as demand for quality assets continues unabated in 2022.
The property at 90 Crown Street consists of a seven-level A-Grade commercial office and retail complex with total net lettable area of 9,171.6sq m on a 3,754.7sq m site.
The ground floor retail accommodation totals 1,703sq m and includes a tavern, while the six upper levels of quality office space total 7,468.3sq m. The building also has 160 car spaces over two levels.
It is fully leased to multiple tenants, including government tenants, being the regional headquarters for the Federal Government’s Services Australia and NSW Government’s Transport Department.
The property is being taken to the market via an International Expressions of Interest campaign run by Knight Frank agents Ben Mostyn, Dominic Ong and Tyler Talbot on behalf of the vendor, Avari Capital Partners.
Mr Mostyn said the sale campaign was expected to attract interest from a wide range of buyers, including overseas investors, institutions and private wealthy individuals.
“We describe this well-known property as the crown jewel of Wollongong – it’s Wollongong’s trophy asset,” he said.
“For investors this property coming onto the market provides a rare opportunity to purchase a fully- leased, A-Grade government-anchored quality asset in one of Australia’s strongest performing office markets,” he said.
“Its blue-chip covenant a huge drawcard, with 100 per cent of the building’s office space occupied by Government tenants, but it’s location is also attractive, being centrally located at the epicentre of Wollongong’s CBD and on the city’s best commercial block.
“This asset is positioned amongst the best retail and entertainment amenities Wollongong has to offer whilst also providing excellent access to the public transport network.”
Mr Ong said office market conditions in Wollongong continued to go from strength to strength, with the growth in businesses and local jobs due to solid economic fundamentals.
“Intense competition for core assets in major CBD locations has led to significant capitalisation rate compression throughout Australian commercial office markets,” he said.
“Although buyer demand has expanded into metropolitan areas, core market yields in regional areas such as Wollongong provide real value.
“The property represents a considerable value-add opportunity for prospective purchasers to increase the underlying income of the asset through a potential addition to gross floor area, expanding the tenant offering and reinforcing the property’s status as the landmark building in Wollongong.”
The Expressions of Interest campaign will close at 4pm (AEDT) on Thursday, March 17.
Further Information
90 Crown Street was acquired by Avari Capital in December 2018 for $50.38m from Castlerock Property Group on a reported yield of 7.8%.
Castlerock had previously acquired the asset in September 2016 for $43.9m from Centuria Properties on a reported yield of 8.3%.
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