This article is from the Australian Property Journal archive
THE Australian Taxation Office has decided not to renew its office lease at Hurstville in Sydney after more two decades, but the building's owner, 360 Capital Group is not worried.
The ATO will vacate the property at 12-22 Woniora Road, Hurstville from the expiry of its lease in February 2015 as part of the ATO’s accommodation rationalisation strategy.
ATO commissioner Chris Jordan said the agency cutting jobs due to a range of factors, including the federal government’s announced reduction in the size of the public sector.
360 Capital’s managing director Tony Pitt said the ATO’s announcement does not impact on the group’s earnings and distributions over the next 12 months and gives the group 14 months’ notice to undertake a releasing campaign for the building.
“Although I am disappointed with the ATO’s decision, given the property’s amenity, the NSW governments’ decentralisation policy and tenant demand within the Sydney south-western office market, the roup is confident of releasing the property with minimal rental downtime.
“I confirm TGP’s direct asset disposal strategy is unchanged, however the Group will undertake the releasing of the property before deciding on the specific disposal strategy for this asset,” he added.
“The 14,700 sqm is located within 200m of the Hurstville train station with parking for approximately 100 cars and is in walking distance to the services within Hurstville business district including Westfield shopping centre.
“Given Western Sydney’s lack of contiguous quality accommodation, coupled with the current demand including various state government and private enterprise requirements, the group is confident of achieving a similar result to the 360 Capital Office Fund’s Burwood asset where it has achieved leases/heads of agreement over 8,000 sqm in the past three months as tenants seek more economical occupancy costs in comparison to those currently offered in CBD office options,” Pitt concluded.
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