Hospitality giant snares outgoing Telstra exchange
Hospitality giant Oscars, led by brothers Bill and Mario Gravanis, has snapped up an imposing Telstra exchange with a leaseback.
The $4.35 million deal for the central Kogarah facility, 2A Belgrave Street, reflects a 4.14 per cent net passing yield.
The initial lease term is three years with fixed three per cent rises.
Telstra then has a six month option.
Oscars, which just over a year ago bought Sydney’s Luna Park, is expected to refurbish and occupy the Kogarah property after that.
2A Belgrave Street
On 535 square metres zoned Mixed Use 1, also exposed to Post Office Lane, the Kogorah property was marketed for its development upside, with residential able to be considered.
The three level brick building contains 1267 sqm.
“This campaign showed just how much depth there is for well located metropolitan assets with genuine future flexibility,” Colliers’ James Cowan, who represented Telstra with Trent Gallagher, said (continues below).
“Kogarah continues to evolve as one of Sydney’s most dynamic health‑anchored precincts and buyers clearly recognised the opportunity to secure a foothold in a market benefiting from sustained investment,” according to the executive.
“Located 130 metres from Kogarah Train Station, the site provides unrivalled access to the suburb’s expanding ecosystem of medical, educational and lifestyle amenities including St George Hospital, Kogarah Town Centre and the vibrant Rockdale and Brighton‑Le‑Sands dining precincts,” he added.
Mr Gallagher said “opportunities with mixed‑use zoning, strong fundamentals and proximity to major infrastructure are commanding premium attention, and this property ticked every box.
Urbis was the transaction adviser.
Kogarah is 14 kilometres south of Sydney’s CBD.
The deal comes nearly two years since Telstra sold a red brick double storey exchange and ex-post office in Melbourne’s Armadale, at the Malvern border, to developer Up Property.
In 2020 meanwhile the telco sold a Pitt St, Sydney, exchange with a leaseback to Charter Hall.
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