Liverpool in spotlight again as $50m office hits the market
Asian logistics and office giant ESR has put a $50 million office block in the western Sydney hub of Liverpool up for sale as it recycles some assets it picked up from taking Propertylink private last year.
The group is selling 211 Northumberland St in the Liverpool CBD, which was originally picked up as part of the Denison portfolio that Propertylink bought for $142 million in 2016.
ESR has tapped Colliers International’s James Barber, Frank Oliveri and John McCann and Ray White Commercial’s Peter Vines and Victor Sheu to sell the building.
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The Asian group is selling off non-core assets to focus on its growing industrial portfolio. Last week ESR and Frasers Property sold an under-construction office building in the Monash Technology Precinct in the Melbourne suburb of Mulgrave to Singapore-listed Ascendas Real Estate Investment Trust for $110.9 million.
In Liverpool, the 7645sqm building sits in the centre of Liverpool CBD and is fully leased to the NSW government department of family and community services until 2022.
ESR separately sold a commercial building earlier this year in Campbelltown for over $19 million.
“We expect strong interest given the quality of this asset as well as the lack of opportunities in the market for investors,” Oliveri says.
McCann notes the strong appetite for suburban assets citing the recent $80 million sale of 1 Fitzwilliam St in Parramatta to an Asian group at a yield of 5 per cent.
“There’s strong interest from offshore buyers into western Sydney given the government’s decentralisation plans from the Sydney CBD and also the infrastructure spend,” he says.
Vines says that with Parramatta booming, investors are seeking the next hot spot and given its proximity to the new airport and billions of dollars being invested in infrastructure in the south west, Liverpool is viewed as a good option.
This article originally appeared on www.theaustralian.com.au/property.