A significant data centre located in the Sydney City Fringe is set to offer a notable investment opportunity on behalf of one of Australia’s largest telecommunications providers.
The well-appointed 3,654sqm site at 30 Ross Street in Forest Lodge is spread across three floors of office and data centre with a basement and on-grade parking and is being sold by Colliers on behalf of a major client.
The property comes with a lease to a TPG Telecom related entity on a 15-year term with a further 10-year option which ensures ongoing operations of the facility. The balance of the building will be available with vacant possession thus supplying buyers with valuable uplift potential.
The vacant areas of the property are subject to pending valuable 9B approvals for education use.
The property is for sale through the team of James Cowan and Matthew Meynell of Colliers Investment Services divisions with price expectations of greater than $45,000,000.
“Over the past few years, our Vendor has fielded a high volume of unsolicited interest from investors and residential developers on this specific asset. Given this insatiable appetite they have opted to test the broader market via an on-market expressions of interest,” said James Cowan, Director of Investment Services at Colliers.
“The interest is not surprising considering the rare site envelope, substantial existing improvements and sensational location. Prospective buyers will have strong regard to the existing use rights, passing income and potential market income, and the underlying E1 Local Centre Zoning” he continued.
The property is situated within the NSW Government’s innovation precinct which will span the area from Central to Eveleigh and is set to create an additional 10,000 jobs in the area by 2036.
“The city fringe has seen a tremendous rejuvenation over the past 5 years, led by adaptive reuses, infrastructure upgrades and demand.” Says Matthew Meynell, Manager Director of Investment Services at Colliers.
Data centres have gained significant interest over the past two years, with the growth of e-commerce and new technological advancements adding to the appeal.
The Australian data centre sector has evolved rapidly, underpinned by the demand for cloud-based storage services and a significant investment in the sector that has increased capacity. Data centres were first established in the 1990s in response to the growing demand for offsite data storage requirements from organisations and governments.
To accommodate such growth, there is reported untapped potential to upgrade buildings with existing infrastructure such as that of 30 Ross Street. There is opportunity to take advantage of the existing site capabilities in power and proximity to the CBD to create an Edge Data Centre of the future.
The property is situated just off Parramatta Road at the corner of Ross Street and St Johns Road, within a precinct which predominantly comprises large format retail, mixed use development with older style commercial buildings, and adjoins the residential community of Forest Lodge.
30 Ross Street, Forest Lodge is for sale via an Expressions of Interest campaign, closing early October 2023.
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