Wollongong Tax Office Sold on 5.5% Yield

Private investment group Black Opal Bay has sold the Wollongong Tax Office for $57m, reflecting a yield of 5.5%

The property was developed by Black Opal Bay in 2013 and provides 6,761sqm of net lettable area on a 2,675sqm site. It has a 2 level basement car park catering for 105 vehicles. The development achieved a NABERS energy rating of 5.5 stars and 5 star Green Star rating.

The property is fully leased, with the Australian Taxation Office leasing approx 84% of the building, along with the ANZ Bank and the Australian Red Cross Blood Service. The building has an attractive 7.2 year WALE by income as at August 2020.

The property was offered for sale by Knight Frank and acquired by Castlerock’s Auslink Property Trust No. 2. The building is the fund’s 10th asset, taking the total assets above $300 million and a WALE close to nine years.

The unlisted fund was launched in 2014 with the objective of building a portfolio of Commonwealth and State Government leased assets located throughout Australia to provide investors with a stable and growing income stream, and long term capital growth.

To date the fund has provided a 12.9% return to investors. The funds other assets include 445 Flinders Street, Townsville, LaTrove GovHub in Morwell, and other assets in regional NSW, QLD, WA & VIC. IN 2019, the Fund took out the the top honours in the Core Property Research annual awards program, being named ‘Unlisted Fund of the Year’.