This article is from the Australian Property Journal archive
ONE of Wollongong’s highest profile commercial buildings, the fully leased Australian Tax Office building in the regional centre’s CBD, has been listed for sale.
The five level building was constructed in 2013 on 2,675 sqm of land and offers 6,761 sqm of net lettable area over four levels of premium A-grade space, with 91 car spaces over two basement levels.
It has a NABERS energy rating of 5.5 stars and 5 star Green Star rating.
Blue-chip tenants in the building also include ANZ Bank and the Australian Red Cross Blood Service.
Knight Frank agents Ben Mostyn and Tyler Talbot are marketing 45 Kembla on behalf of a private owner.
Talbot said the building had many strong investment fundamentals, including its high-quality accommodation and secure long-term income. It is offered with a 7.2 year weighted average lease expiry by income, and a net passing income of $3.22 million per annum. The Australian government accounts for 84% of gross income.
The corporate precinct of Kembla St has undergone a significant transformation in recent years, with over $1.4 billion worth of redevelopment. The asset neighbours upcoming developments including the IMB Headquarters and Lang’s Corner at 95-119 Crown St, and is close to the Wollongong Central, the largest shopping centre in the Illawarra region.
Sydney builders Blaq Projects last month lodged plans with Wollongong City Council for a $44 million office tower is planned in the western Crown Street hospital precinct, which would rise 17 storeys and become the CBD’s tallest office building.
“With Wollongong being one of the best performing markets in Australia, we expect buyer demand for this asset to be strong, with interest expecting to come from both overseas and domestic buyers,” Mostyn said.
At the end of 2018, Avari Capital Partners paid a city record of more than $50 million for the seven level, 9,172 sqm corner building at 90 Crown St, on a yield of 7.75%, and which is also leased to a number of government departments. That broke the previous record of $46.1 million, set little more than one year prior when Folkestone sold the six-level A-grade Corporate Square building at 43 Burelli Street to an offshore private investor from Vietnam.
The Wollongong LGA is home 96,000 active jobs and the Wollongong City Council has committed to seeing an additional 10,500 net new jobs within the CBD by 2028, expected to increase the demand for high quality office accommodation.
Expressions of interest for 43 Kembla St close 27th August.
