This article is from the Australian Property Journal archive
THE GPT Wholesale Office Fund has put its 16 level office building in Sydney CBD on the block.
Jones Lang LaSalle, has been appointed by GWOF, to manage the sale of its freehold stratum interest in 179 Elizabeth St by an Expressions of Interest closing 12:00 noon May 28.
The commercial office building is located adjacent to the Sheraton on the Park hotel and opposite Hyde Park and houses the well-known Tattersall’s Club (under separate ownership). The Green Building Council of Australia is a high-profile tenant.
GWOF fund manager Martin Ritchie said the sale process is in response to interest received from a number of parties in recent months and that property no longer fit the fund’s longer term investment strategy with a focus on premium and new A Grade trophy style assets.
Current zoning offers long term conversion potential for a mixed use asset, subject to council approval.
Some options could include converting the upper office floors to residential apartments and full commercial strata conversion of the low rise offices.
JLL’s Australian head of capital markets John Talbot expects this property to generate significant interest, given its prime CBD location, attractive lease profile and its long term residential/strata conversion potential.
“A property such as this, with its strong diversified tenancy mix and rolling expiry income streams is extremely attractive to investors in the current market.
“The long-term potential for residential or commercial strata subdivision to take advantage of the building’s location and views of Hyde Park and Sydney Harbour is also highly attractive, giving potential active purchasers a very attractive ‘value add’ opportunity,” he added.
The majority freehold stratum interest being sold consists of a total NLA of 14,926 sqm, of which 14,100 sqm is office space. The remaining 826 sqm includes retail tenancies, with additional storage facilities, a loading dock and basement parking facilities for 107 vehicles.
The property is well tenanted, providing an average lease expiry of 4.5 years via income from the 21 office and four retail tenants within the building.
Australian Property Journal
