This article is from the Australian Property Journal archive
THE University of Sydney has sold off its 431 Glebe Point Road holding for $39 million, taking advantage of the current eager investment market conditions.
Spanning 2,415sqm of land, with a gross building area of 6,934sqm, the corner property straddling Glebe Point Road and Leichhardt Street is located in Glebe, approximately 3km southwest of Sydney’s CBD.
Andrew Graham, James Cowan and Samantha Carroll from Colliers managed the transaction, on behalf of the university, fielding 24 submissions before eventually selling to a private investor.
“We have seen a steady rise in capital seeking assets and there has been a visible shift in pricing with commercial and a range of other groups in play,” said Graham, national director of strategic advisory at Colliers.
Interest was received from end users such as commercial, residential, health and education, though the successful investor has agreed to the existing lease terms with the current tenant at the site, The Woolcock Institute of Medical Research.
“We are now seeing a crossover in values where commercial outcomes are matching that of residential. The result is a higher level of ‘cleaner’ submissions from prospective purchasers, with less emphasis on due diligence and conditional contracts which a residential bid generally requires,” added Graham.
The site includes 43 car spaces, with plenty of natural light, views of the water and street frontages which cover most of the property.
“Many organisations are looking for ways to consolidate their property portfolio in order to unlock capital for other business opportunities,” said Cowan, director of investment services at Colliers.
The hefty sale price of $39 million reflects not only the low interest rate market and pent-up demand, but long-term holders of property looking to reap the rewards of the current market environment by divesting existing assets.
“Consider Allegro Funds divestment of the Best & Less Head Office for $29 million in 2020 via Colliers, and the imminent sale of 54 Parramatta Road, Forest Lodge, on behalf of Bedford College which is relocating to the Norwest. In the latter campaign, expressions of interest closed on Friday 12 November 2021 with six formal offers being received from a mixture of owner occupiers, investors and speculative developers recognising the underlying value,” concluded Cowan.
