Council spends $54.5m for office
Stirling Property Funds has sold a renovated Liverpool CBD office to the Inner West Council for $54.5 million – a 5.95 per cent yield.
The deal for 203-209 Northumberland Street is a windfall for the vendor which paid $46.76m for it and a neighbouring 1331 square metre car park in September, 2019.
Stirling divested that component, 64 Bathurst St, 14 months ago, banking $7.85m.
At the edge of Liverpool’s CBD and with west facing view security, a residential tower is planned there.
The office meanwhile underwent a $2.4m refurbishment including an upgrade to lifts, air conditioning and fire services.
Stirling also re-let it prior to offering it for sale last September.
Colliers’ John McCann, Frank Oliveri and Joe Sacco with Knight Frank’s Wally Scales and Dominic Ong were the agents.
“Liverpool has seen increased interest since the new Western Sydney Airport started construction [last February],” Mr McCann said.
203-209 Northumberland Street
On 1593 sqm at the south west corner of Huckstepp Serviceway, the Inner West Council will retain the eight storey Northumberland St office as an investment with the option of long-term development.
With 7290 sqm, it returns annual rent of c$3.25m.
The Weighted Average Lease Expiry is 4.7 years (story continues below).
Banks, Commonwealth and Westpac, the Benevolent Society, Brydons Lawyers, the Department of Human Services and Ramsay Health are amongst the occupiers.
Longer term, a building more than twice the present area could be considered, according to the selling agents.
When the office and car park sites were amalgamated, a 21 level tower was planned.
Elsewhere in Liverpool, in April, 2020 – a month into the national lockdown – ESR banked $52.5m, reflecting a 6.59pc yield, selling the neighbouring four storey, 7654 sqm office to a Chinese investor.
ESR paid Propertylink $35.76m for that asset, 211 Northumberland St, as part of a $142m portfolio in 2016.
“The property was well received by the market with council securing the property after the second round, following an expressions of interest campaign,” Mr McCann said following the 203-209 Northumberland St campaign.
“We had strong interest from local and private investors,” he added.
Liverpool is 31 kilometres south west of Sydney.
It is 18 kms east of Badgerys Creek, where the WSA is taking shape.
Subscribe to our newsletter at the bottom of our page.
