Stirling Completes Asset Strategy and places Liverpool Property on the Market

27 September 2022

Three years after acquiring 203 Northumberland Street Liverpool, Stirling has completed its defined asset strategy of repositioning the Property and has commenced marketing the Property for sale on behalf of one of its managed funds.

Stirling identified Liverpool, Sydney’s 3rd CBD, as the major beneficiary of Australia’s largest government infrastructure investment program totalling in excess of $20 billion. This investment, coupled with established health and education sectors, located within the Liverpool CBD underpins a compelling investment proposition for the Property.

Stirling’s asset repositioning strategy included an extensive capital expenditure program to significantly enhance amenity, re-leasing vacant space and increasing rents. The 8-level office building with 147 basement car spaces provides the following investment attributes:

  • 93% occupancy with 4.7 year WALE
  • 4.5 Star NABERS energy rating
  • Diversified tenant mix with very strong lease covenants including NSW Department of Health, Ramsey Health, Commonwealth Bank, Westpac Bank, Brydens and Catholic Care
  • Income has a high degree of inflation protection with 34% of the Property’s income having annual review mechanisms based on the greater of CPI or a fixed percentage
  • Liverpool office market boasts one of the lowest vacancy rates across Greater Sydney, particularly against its major peer group.

The post-COVID period has verified the underlying strength of the Liverpool office market with average incentives offered at 18%, compared to Sydney CBD’s 40%, reinforcing the underlying investor confidence in Liverpool. In addition, the $740 million expansion of Liverpool hospital, growth in the education sector and the increasing exposure to high growth industries, positions the Property well for continued growth.

203 Northumberland Street Liverpool is situated on a large site area of 1,593 sqm with a 10:1 FSR resulting in approximately 8,630 sqm of unutilised FSR.

Scott Girard, Stirling’s Head of Assets, said that 203 Northumberland Street presents one of the best, if not the best, tenant profiles in the metropolitan Sydney office markets.

“Tenants such as NSW Health, Ramsay Health, Commonwealth Bank, Westpac and Brydens have selected the Property as their office-of-choice in southwestern Sydney.

The future growth prospects for Liverpool, and the Property, are compelling given the infrastructure pipeline to be delivered over the next decade.”

The sales campaign, headed by John McCann from Colliers and Wally Scales of Knight Frank, commences 14 September 2022.