This article is from the Australian Property Journal archive
A TWO-storey freehold office building in Ryde has sold for $9.25 million sale price, marking one of the most significant investment transaction in the Sydney suburb in more than 10 years.
Located at 19-27 Devlin Street, around 13km north-west of the Sydney CBD, the Services Australia-occupied building spans 1,281sqm of GLA on a 1,427sqm block with two levels of basement parking.
Ray Ahsan and Lord Darkoh from CBRE managed the sale via an expressions of interest campaign, with the sale price reflecting a 6.5% yield.
“The secure tenancy of Services Australia, combined with the prime location, presented an exceptionally attractive opportunity for investors,” said Ahsan.
“Several other firms had previously attempted to sell the asset without success. Our local expertise and strategic approach enabled us to secure an outstanding result for our offshore-based client.”
The property represents the only government-tenanted freehold in Ryde and drew in significant levels of interest from both local and offshore investors, according to Ahsan.
“The sale of this property reflects the ongoing demand for stable and well-located investment opportunities. The fact that it has not changed hands in a decade further demonstrates its desirability,” said Darkoh.
The building was purpose-built for the Commonwealth of Australia, with Services Australia occupying the entire space since its construction in 1991.
With a 100% occupancy rate, the MU1 Mixed Use zoned building boasts a current net income of $601,440 per annum, with the zoning offering future development potential for the new owners.
The property sits just 250 metres from Top Ryde City Shopping Centre and is well connected to Macquarie Park, Parramatta, the CBD and Greater Sydney via public transport with bus, train and fair connects all nearby.
Investment activity has picked up recently with more than $600 million of offices changing hands in Sydney and Melbourne.
As foreign investment into Australia’s office, retail and industrial markets has picked up over the first half of the year, with offshore interest set to remain key players through the rest of 2024.
