Another ‘hot’ Centrelink trades off-market
The investor who paid $8.875 million for a large, freestanding Centrelink office on 1.72 acres in the Central Coast town of Tuggerah, in 2016, has sold it for a premium following an off-market deal.
The recently modernised 14 year old, 2750 sqm building, with 102 car parks at 10 Teamster Close (pictured, top), is trading this time for $11.925m.
With another private investor, the negotiation reflects a seven per cent capitalisation rate; settlement was earlier this year.
Leiba Commecial’s Marc Leiba was the agent.
The sale comes five months since we reported an 1813 sqm Centrelink on 3537 sqm at Port Adelaide traded for $9.5m – a c5.5pc yield.
In 2021, an office rented to the DHS-backed group in Ballina, New South Wales, fetched $6.7m.
Coincidentally, both investments sold after off-market deals.
Four years ago meanwhile MPG acquired Centrelinks in Victoria, at Moree and Morwell.
It also bought an office leased to that occupier that year in Brisbane’s Logan.
Essential services still “hot”
Proving the “recession proof” and “hot” claims in recent years given to the sector by amongst others, agents, valuers, developers and investors, essential services backed investments continue to find favour with private investors and, for higher priced properties, high net worth individuals and families, syndicates and funds (story continues below).
“Despite the continued uncertainty that the commercial property market is experiencing due to the interest rate environment, single tenanted government anchored properties are still highly sought after by a number of investors,” Mr Leiba, who also marketed the Ballia, Moree, Morwell and Logan assets, said.
Wyong is c100 kilometres north of Sydney’s CBD.
Renovated, relet
Servicing a large catchment, including the Wyong Shire specifically, with c171,000 residents, Centrelink Tuggerah is near the train station, Westfield, a Bunnings and homemaker centre.
The outgoing landlord recently secured the tenant for five years after agreeing to undertake some upgrades.
The incoming owner will therefore be able to claim depreciation allowances for tax.
Centrelink has occupied since the building was developed.
“Whilst the [Tuggerah] property is anchored to the government on a long term, it sits on a larger corner site surrounded by other well established commercial businesses so it would suit alternative uses in the longer term,” Mr Leiba said.
Subscribe to our newsletter at the bottom of this page.
