This article is from the Australian Property Journal archive
MORE than $90 million is expected for one of southern Sydney’s most notable commercial office assets, Taylors House in Waterloo, which is predominantly occupied by University of Sydney affiliate Taylors College.
Purpose-built in 2001, 965 Bourke Road has a net lettable area of 11,024 sqm and affords strong underlying land value with a 4,002 sqm site area, three street frontages and mixed-use zoning. It has a 5.9-year weighted average lease expiry
The building is being sold by the Colliers’ Adam Woodward, Alex McColl, Michael Crombie and James Mitchell, in conjunction with James Barber, Luke Billiau, Mitch Noonan and Kate Low of JLL, on behalf of vendor Fortius, which became part of Growthpoint Properties Australia last year.
“Taylors House presents the opportunity to capitalise on the strong rebound in student migration in one of Australia’s best-performing commercial precincts. It benefits from a secure income stream underpinned by an internationally recognised tenant, situated on a large site with flexible mixed-use zoning,” Woodward said.
Taylors College is a global education provider that offers pathway programs to higher education. In Sydney, it has occupied the building continuously for 22 years, and delivers the University of Sydney Preparation Programs.
Woodward said buyers would be attracted to the positive rental reversion and location north of Green Square Town Centre, within the $13 billion Green Square urban renewal precinct, and new development and an influx of infrastructure projects, including the Waterloo Metro Station, the completed WestConnex access point in Alexandria and $540 million worth of improvements to Green Square by the City of Sydney.
“The asset’s liquid price point and compelling rental upside together with the occupier’s strategic alliance with The University of Sydney, we anticipate the asset will generate strong market interest, particularly supported by the reallocation of capital into social infrastructure assets,” Noonan said.
Demand for new and existing office space in southern Sydney is primarily driven by lower occupancy costs and its proximity to two of Australia’s main international gateways in Sydney Airport and Port Botany, as well as the nearby Sydney CBD and city fringe. The precinct now has a diverse mix of commercial occupiers, as many choose to relocate from the Sydney CBD and city fringe where they can occupy a creative space at a more affordable rent.
The expressions of interest campaign closes 13th July.
