A landmark commercial office building in Wollongong has sold for a record price, at over $65 million, marking the highest ever commercial office sales transaction for the city.
The property at 90 Crown Street was purchased by a private Singaporean investor from Avari No. 15 Pty Ltd in a deal negotiated by Ben Mostyn, Dominic Ong, James Mulcair and Tyler Talbot of Knight Frank following an Expressions of Interest campaign.
The seven-level A-Grade commercial office and retail complex has 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.
The highly specified building, which has a 5.0 Star NABERS Energy Rating, 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.
Mr Mostyn said the sale campaign generated more than 80 enquiries, with buyers attracted to the quality of the covenant and building, as well as its location.
“The intensity of buyer competition for this asset, which is considered to be Wollongong’s trophy asset, in one of Australia’s growing cities resulted in a record sale price for a commercial office building in Wollongong,” he said.
The asset was sold with a WALE of 3.68 years with long tenure to blue-chip covenants.
“It is 100 per cent leased, with nearly 80 per cent of the gross income secured by government tenants.
“The location of this well-known building was also a huge drawcard, being positioned amongst the best retail and entertainment amenities Wollongong has to offer while also providing excellent access to the public transport network.”
Mr Ong said Wollongong was an increasingly sought after market for investors, with demand only set to strengthen.
“With an increasing number of buyers becoming priced out of the Sydney and major metro markets, a growing number have turned their attention towards non-metro and large regional markets, attracted by the higher yield metrics on offer,” he said.
“A positive demand outlook, coupled with growth in face rents and relative yield disparity to other major non-CBD markets will only enhance the appeal to investors for quality assets in the Wollongong CBD.
Mr Mostyn said office market conditions in Wollongong continue to go from strength to strength.
“Supported by solid local economic fundamentals, this has prompted growth in the number of businesses and local jobs,” he said.
“Wollongong’s coastal amenity and the cultural appeal of its work-life balance, gateway location and thriving business community has attracted an unprecedented level of investment into upgrading its infrastructure and skyline, including $1.6 billion of investment in the CBD in recent years and a further
$400 million in projects in the pipeline.
“For real estate markets, this investment coupled with Wollongong’s supportive demographic profile will be key influences on the shape and magnitude of occupier demand across a number of sectors.”
Related Articles
