Wollongong office fetches record price again

Artist’s impression of an extended 90 Crown Street, Wollongong.

Avari Capital has sold a Wollongong office for $65.1 million – a region record price for an asset of this type – to a Singapore investor.

The deal reflects a major capital gain for the fund manager which paid Castlerock $50.38m in late 2018.

That result was a local watermark too.

The seven storey, 9172 square metre office, with 160 car parks, previously traded for $43.9m in 2016.

That exchange set a Wollongong office record as well.

CBRE’s Debt and Structured Finance division and Knight Frank brokered the latest disposal, speculated to reflect a net passing yield of about six per cent.

The property was held by AVARI Fund 15, which paid unitholders eight pc, per annum, rental income, and who will now receive a share of the capital gain (story continues below).

90 Crown Street

On 3755 sqm, the Wollongong office is the regional headquarters for the federal government’s Services Australia, previously known as the Department of Human Services, and the state transport division.

Including the ground floor retail component – which makes up about 20pc of the lettable area – the Weighted Average Lease Expiry based on income is 3.68 years.

The building also has development upside via an extension – approximately 1600 sqm more office area and 400 sqm of retail.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.