Commercial Centrelink buildings in Blacktown and Mt Druit sell for combined $74.5m
Two separate Centrelink buildings have been sold for a combined price of $74,580,000.
Brought to market by Ray White Western Sydney commercial agents Peter Vines and Victor Sheu, the dual sites of 8 First Avenue in Blacktown and 3 & 5 Mount St in Mount Druitt were sold in November and December last year.
The sales figured has now been released following settlement.
Both sites were offered to the market for the first time and, according to Mr Vines, both sites had been purpose built to be Centrelinks by the owners of the property.
“Both sites will remain as a Centrelink; Blacktown was fully leased as a Centrelink and they have a lease in place. Mt Druitt was leased to Centrelink as well as a handful of other tenants,” Mr Vines said.
“We received significant interest for both properties. Given the dollar quantum of each property, the investors were predominantly high net worth individuals based locally and instate as well as syndicate buyers and smaller funds managers.”
The properties were the highest sales value achieved for commercial properties in their respective suburbs.
Mr Vines believed Centrelink and government agencies were the ideal tenants that a commercial lease could get, as they always had the ability to pay the rent in changing economic times or lockdown periods.
“Interest rates have been at historical lows and there has been a shortage of commercial investment across NSW for investors to purchase. They need to buy property to get a return on their money.”
“With interest rates touted to increase, we think that it will increase yields however these rates remain at record lows and so we anticipate continued strong yet cautious activity in the market.”
Western Sydney has a significant amount of value growth potential in the commercial market, with a phenomenal amount of money being spent on major infrastructure projects in the region.
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