A commercial office building in Wollongong, New South Wales, has sold for more than $65 million to Singaporean buyers in a deal that broker Knight Frank says represents a record price for the coastal city.
The office and retail complex at 90 Crown Street was sold to private buyers by an Avari Capital Partners fund following a sale campaign that generated more than 80 enquiries.
The seven-level A-Grade commercial office and retail complex has a total net lettable area of 9.171sqm, and includes a tavern on the ground floor while the six upper levels are comprised of office space.
The building, which also has 160 car parks and boasts a 5.0 Star NABERS Energy Rating, is fully leased to multiple tenants and is the regional headquarters for the Federal Government’s Services Australia and the NSW Government’s Transport Department.
Knight Frank’s Ben Moyston said buyers were attracted to the quality of the 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.
“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.”
The broker added that office market conditions in Wollongong continue to go from strength to strength, with the sale of 90 Crown Street a shining example of the region’s popularity.
“Supported by solid local economic fundamentals, this has prompted growth in the number of businesses and local jobs,” Moyston 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.”
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