Two years after it set a commercial property record, a landmark Wollongong site is now expected to fetch more than $50 million.
The site at 90 Crown Street has been listed for sale.
In late 2016, Centuria Property Funds sold its commercial office property at 90 Crown Street.
The gross sale price was $43.9 million to a Melbourne-based funds management group.
It reportedly set a new record for the Wollongong commercial property market, achieving a rate per square metre of $4786.
The site was bought in 2005 for $30.675 million.
It is situated on a corner site of about 3745sqm.
It comprises a total of circa 9172sqm of net lettable area set across seven levels, in addition to 160 car parking spaces.
Knight Frank’s Ben Mostyn and Tyler Talbot, in conjunction with MMJ’s Geoff Jones and Travis Machan are the co-selling agents for the latest listing of this site.
Mr Machan said in 2016, the building received international investor attention.
Two years on, Mr Machan said given 90 Crown Street’s strategic location, premium tenancy mix and value add potential, it will again put Wollongong in both the national and international spotlight.
He expected it to sell for more than $50 million.
“Beside the fact that the building is predominately underpinned by sought-after government tenancies such as RMS and DHS, investors are sure to be attracted by the mix of high-profile retail tenants like Mr Crown and First State Super,” he said.
“Many of the tenants are long-standing with a number recently renewing their commitment in the building up to as long as 2027.
“We expect extremely strong interest from a range of astute investors and property funds, and this will only further increase Wollongong’s growing reputation within Australia’s commercial property sector.”
Mr Mostyn said 90 Crown Street offers a secure long-term income stream, with the office component of the property 100 per cent let by a combination of government departments.
Mr Mostyn said the site provides the incoming owner a mix of opportunity upside and risk mitigation, as it has a weighted average lease expiry of three-and-a-half years, along with approval for an additional 2036sqm of developable gross floor area.
“The ability to add around 1600sqm of office space and 440sqm of retail space represents a considerable value add opportunity to increase the underlying income of the property, expand the tenant offering and reinforce the property’s position as Wollongong’s undisputed trophy asset,” he said.
The site is for sale via Expressions of Interest, closing 4pm on November 22.