A private Singaporean investor has bought a landmark office building in Wollongong, New South Wales for more than $65 million, marking the biggest office deal for the regional city.
Located at 90 Crown Street, the A-grade office and retail complex offered 9,171 sqm of net lettable area across seven levels.
The property, which was situated on a 3,754 sqm site, had ground floor retail accommodation, six levels of office space and 160 car spaces over two levels.
The Crown Street asset had a WALE of 3.68 years and was fully leased to multiple tenants and served as the regional headquarters for the Federal Government’s Services Australia and NSW Government’s Transport Department.
The deal was negotiated by Knight Frank’s Ben Mostyn, Dominic Ong, James Mulcair and Tyler Talbot.
Mostyn said the sale expressions of interest 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,” Mostyn said.
“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.”
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.”
Recent regional commercial property deals include Quanta’s acquisition of the Yamanto Village in Ipswich, Queensland for $21.1 million earlier this month.
Harvest Hotels recently bought the Windsor Castle Hotel in East Maitland in NSW for $51m, while the Woolworths Group sold a neighbourhood shopping centre in Newcastle in NSW to Centuria for $60.25 million.