One of the Illawarra’s richest families are selling their Albion Park Rail headquarters and expected to reap more than $24 million from the sale, but the company says they remain committed to the Illawarra.
The Kollaras Group’s main offices and distribution centre, part of an industrial facility at 9 Durgardin Drive, has been put on the market through Knight Frank.
More than 150 workers are employed at the site, with operations to continue through a long-term lease.
Managing director John Kollaras said it’s a “standard sale and lease-back procedure” and part of the company’s long-term plans for its business growth within the region.
“We originally acquired the site so we were in control of setting up a facility that would meet our needs with a plan to then organise a long-term lease to continue operations,” Mr Kollaras said.
In July last year the Kollaras Group offloaded another major Illawarra assett, Wollongong’s City Beach function centre and surf club, to Jim Eddy (of the Jamberoo Action Park empire) and Caroline Brinsmead.
The group has also in recent years begun delving into residential property development, an area Mr Kollaras said will continue.
“Our property business is one arm of our company and will continue to be an important part of our group,” he said.
“Over time there will undoubtedly be further development as well as turnover in investment assets.
“We are proud to be a part of the Illawarra landscape as we have been for nearly 60 years and there are no plans to change that.”
The total industrial site at Albion Park Rail will be sold in one line and comprises of commercial office and warehouse space across 31,500 square metres, 360 car spaces as well as front, rear and side car and truck access.
Knight Frank's Ben Mostyn, Matthew Lee and James Mulcair are managing the sale of the property on behalf of the Kollaras Property Holdings.
Mr Mostyn told Fairfax he thinks likely buyers will be high net worth private investors, local and interstate syndicators and smaller trust funds.
"The property offers a great mix of modern, functional improvements, and the flexibility of existing strata division approvals,” he said.