This article is from the Australian Property Journal archive
AUSTRALIAN Korean investment and fund manager Inmark Asset Management is moving to capitalise on investor demand for long-leased office assets, offering the headquarters of supermarket giant Woolworths for sale with hopes of over $400 million.
Located in Bella Vista, the asset presents what would be the largest suburban Sydney office sale since 2019, when Charter Hall bought the Jessie Street Centre in Parramatta for $415 million, and Starwood Capital and Arrow Property bought the Zenith Centre in Chatswood for $438 million.
The Woolworths head office at 1 Woolworths Way is considered a trophy asset within Inmark’s global office core portfolio, which comprises approximately US$3.25 billion of assets under management across Australia, the US, Europe and Korea.
The campus-style property has 44,911 sqm of floor area across three buildings linked by a central atrium, with floorplates spanning over 3,000 sqm, staff amenities including an on-site Woolworths Metro supermarket, a gym, café, sporting facilities, a data centre and over 3,000 car spaces.
It offers a net lease to Woolworths and a WALE of 10 years from November 2021.
The site spans nine hectares of land and offers approximately 28,000 sqm of commercial office floor area to be further developed in accordance with the initial masterplan consent.
Inmark has appointed James Parry, Flint Davidson, Stuart McCann and Michael Andrews of CBRE and Adam Woodward, James Mitchell and James Barber of Colliers to steer the expressions of interest campaign.
They are expecting significant interest from both domestic and offshore buyers, underpinned by the property’s long-term income derived from an ASX top 10 company. Inmark bought the asset five years ago for $336 million on behalf of a group of South Korean institutional buyers.
“The weight of capital seeking secure, long-term income streams has doubled over the past 12 months, with a heavy influence from offshore domiciled investors looking to Australia as a safe haven given our strong economic performance,” Woodward said.
“Non-discretionary food-based and every day retailing in Australia has boomed throughout the COVID-19 pandemic, and Woolworths has significantly outperformed the ASX 20 during this time, highlighting the strength of the covenant,” Woodward said.
Parry said the quality of the asset and its significant on-site infrastructure and amenities would be key investor drawcards, with the property recognised as one of the leading office campuses in Australia.
“The asset is situated in the strategic North West Priority Growth Area, encompassing one of Sydney’s largest working populations,” Parry said.
“It is positioned to capitalise on the newly opened Sydney Northwest metro line and the heightened focus on hub and spoke locations such as Norwest/Bella Vista, which offer high quality office accommodation, relative affordability and multiple transport options.”
Expressions of Interest close 22nd July.
