- Sold for over $65 million to a Singaporean investor at a record prive
- Located at 90 Crown Street
- Total NLA of over 9,000sqm on a 3,754 sqm site
A commercial office building located at a prominent Wollongong location has been sold for a record price, over $65 million.
Wollongong is located some one and a half hours south of Sydney, with the regional markets gaining momentum:
“With an increasing number of buyers 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,” said Knight Frank’s Dominic Ong.
“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,” added Mr Ong.
The 90 Crown Street property was purchased by a private Singaporean investor from Avari No.15 Pty Ltd. The seven level A-Grade commercial office and retail complex has a total net lettable area of 9,171.6 square metres on a 3,754.7 square metre site.
The ground floor retail accommodation totals 1,703 square metres and includes a tavern, while the six upper levels of quality office space total 7,468.3 square metres. The building also has 160 car spaces over two levels.
90 Crown Street is fully leased to multiple tenants, these include the regional headquarters for the Federal Government’s Services Australia and NSW Government’s Transport Department.
Sold with a WALE of 3.68 years with a long tenure to blue-chip covenants, the property attraced over 80 enquiries:
“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,” said Knight Frank’s Ben Mostyn.
“It is 100 per cent leased, with nearly 80 per cent of the gross income secured by government tenants.”
Wollongong also has wider ranging attractions, said Mr Mostyn:
“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.”
