Sydney Olympic Park office set for $50m sale
Charter Hall has put a $50 million-plus price tag on a major office building within Sydney’s Olympic Park.
The A-grade building, leased to defence contractor Thales Australia, represents a major part of Olympic Park, comprising almost 6000sqm of the 130,000sqm of lettable space throughout the precinct.
Located at 7 Murray Rose Ave, the five-storey property has retail at ground level, with office space spanning the remaining four floors.
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Thales, which develops technology and systems for the defence force, has a lease in place until at least 2032, while the building has an overall weighted average lease expiry of more than 12 years.
Knight Frank’s Tyler Talbot and Graeme Russell and Savills’ Matthew Dunn and Tim Grosmann have been tapped to market the property.
Talbot says the strong tenancy and location are expected to attract investors both locally and abroad.
“The asset is strategically positioned opposite the Sydney Olympic Park Train Station and provides secure long-term cash flow being underpinned by a long lease to strong covenant Thales Australia until 2032,” he says.
According to Dunn, investors will increasingly look for more stable assets in 2019, with questions hovering over parts of the property market.
“As investors speculate what the outlook for the property market will be in 2019 an asset such as this with a 12-plus-year WALE is an astute play for investors to weather any type of downturn,” he says.
The Sydney Olympic Park Master Plan forecasts the precinct to have 34,000 workers, 5000 students and more than 23,000 residents within its confines within the next 11 years.
The Olympic Park hotel market has also been increasingly active, with a number of properties transacting over the last 12 months, including French giant AXA Investment Managers-Real Assets’ purchase of three hotels within the suburb and a fourth in Canberra for up to $330 million.
The office building at 7 Murray Rose Ave will be sold through expressions of interest, which close on March 27.