Australian/Korean investment and fund manager Inmark Asset Management is moving to capitalise on global investor demand for long-leased office assets with the sale of the national Woolworths headquarters in Sydney’s north-west.
The property is considered the trophy asset within Inmark Asset Management’s global office core portfolio, which comprises approximately US$3.25 billion of assets under management across Australia, the US, Europe and Korea.
The sale represents the largest Sydney suburban office offering since 2019, when Parramatta’s Jessie Street Centre traded for $415 million to Charter Hall and Singaporean sovereign wealth fund GIC and Chatswood’s Zenith Centre was acquired for $438m by Starwood Capital and Arrow Property.
Inmark has appointed James Parry, Flint Davidson, Stuart McCann and Michael Andrews of CBRE and Adam Woodward, James Mitchell and James Barber of Colliers to steer the sale of the 44,911sqm Woolworths campus.
The international Expressions of Interest campaign is expected to generate significant interest from both domestic and offshore buyers, underpinned by the property’s long-term income derived from an ASX top 10 company.
The 1 Woolworths Way, Bella Vista property is positioned on an irreplaceable 9ha of land and comprises three separate office buildings, linked by a central atrium. There is also approximately 28,000sqm of commercial office floor area available to be further developed in accordance with the initial masterplan consent.
The architecturally designed campus offers large, efficient floorplates spanning over 3,000sqm, significant staff amenities such as an on-site Woolworths Metro supermarket, a gym, café, sporting facilities, a significant data centre and over 3,000 car spaces.
It offers a net lease to Woolworths and a WALE of 10 years from November 2021.
“The weight of capital seeking secure, long-term income streams has doubled over the past 12 months, with a heavy influence from offshore domiciled investors looking to Australia as a safe haven given our strong economic performance,” Colliers’ Mr Woodward said.
“Non-discretionary food-based and every day retailing in Australia has boomed throughout the COVID-19 pandemic, and Woolworths has significantly outperformed the ASX 20 during this time, highlighting the strength of the covenant,” Mr Woodward added.
CBRE’s James Parry said the quality of the asset and its significant on-site infrastructure and amenities would be key investor drawcards, with the property recognised as one of the leading office campuses in Australia.
“The asset is situated in the strategic North West Priority Growth Area, encompassing one of Sydney’s largest working populations,” Mr Parry said.
“It is positioned to capitalise on the newly opened Sydney Northwest metro line and the heightened focus on hub and spoke locations such as Norwest/Bella Vista, which offer high quality office accommodation, relative affordability and multiple transport options.”
Expressions of Interest close July 22, 2021.