Sydney University sells prime Glebe site for $39m as part of major real estate sell-off
Sydney University has sold one of its prime properties in Glebe for $39m, following a hotly contested expressions of interest campaign.
The massive sale is a key component of a major real estate sell-off by the university, that has so far seen them bank $62,596,250.
And there are more sales to come.
Located on the corner of Glebe Point Road and Leichhardt Street, 431 Glebe Point Rd sits on 2415sq m of land, with a gross building area of 6934sq m, including 43 marked car spaces.
The elevated site has extensive water, CBD and district views and is close to two light rail stations.
CoreLogic records show The University of Sydney bought the site from Perpetual Trustee Company Ltd in December, 2005, for $14.8m.
The property was sold on November 17 via an expressions of interest campaign led by Colliers’ agents Andrew Graham, James Cowan and Samantha Carroll.
They said the demand for city fringe assets has been on the rise along with general demand from capital searching for sound property investments.
“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 Mr Graham, Colliers’ national director of Strategic Advisory.
“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.”
The campaign produced 24 submissions from a wide range of end users including commercial, residential, health and education.
The successful purchaser was an as-yet unidentified private investor who has accepted the existing lease terms with the existing tenant, The Woolcock Institute of Medical Research.
Mr Cowan, Colliers’ director of Investment Services, said the $39m deal spoke to the current low interest rate environment and associated pent-up investment demand.
Long-term landowners were increasingly looking to unlock equity in existing assets to capture the current market momentum, he said.
“Many organisations are looking for ways to consolidate their property portfolio in order to unlock capital for other business opportunities,” he said.
“Consider Allegro Funds divestment of the Best & Less Head Office for $29m 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.”
A spokesman for the university said in a statement they had moved to list the properties to “take advantage of Sydney’s current strong real estate market”.
“We are considering which of our off-campus properties are surplus to our needs and therefore suitable for sale,” she said.
“Our assessment is ongoing, however a number of properties are considered appropriate for sale now. These include 431 Glebe Point Road and 12 predominantly Victorian terraces in the Arundel Accommodation Triangle.
“Of these, seven have already been sold, four remain on the market and are intended for sale by quarter one, 2022.
“Selle House, a 14 bed older apartment building previously used for student accommodation, has also been sold.
“Any revenue made from sales of our property will be reinvested to support our core teaching and research objectives, and we are only considering buildings that won’t be required for our current or future operations.”
WHAT HAS ALREADY BEEN SOLD BY SYDNEY UNIVERSITY
Selle House, 28-30 Parramatta Rd, Forest Lodge, sold by Shannan Whitney, of BressicWhitney Glebe, for $7.05m.
A three-bedroom terrace at 10 Arundel St, Forest Lodge, sold by John Yannakis, of BresicWhitney Glebe, for $1.776m.
A three-bedroom terrace at 12 Arundel St, Forest Lodge, sold by Renae Dickey, of BresicWhitney Glebe, for $2.41m.
Two adjacent four-bedroom terraces on separate titles at 16 and 18 Arundel St, Forest Lodge, sold by John Yannakis, of BresicWhitney Glebe, for $2.018m and $2,022,500 respectively.
A three-level, four-bedroom terraces at 20 Arundel St, Forest Lodge, sold by John Yannakis, of BresicWhitney Glebe, for $2.22m.
A nine-bedroom house on 580sq m at 24 Arundel St, Forest Lodge, sold by Shannan Whitney, of BresicWhitney Glebe, for $4m.
A four-bedroom terraces at 22 Parramatta Rd, Forest Lodge, sold by John Yannakis, of BresicWhitney Glebe, for $2.1m.
WHAT IS LEFT TO BE SOLD
A five-bedroom terrace at 20 Parramatta Rd, Forest Lodge, is for sale with a guide of $1.9m to $2m, through Renae Dickey, of BresicWhitney Darlinghurst.
Other properties include 24 Parramatta Rd, Forest Lodge, with a guide of $1.9m to $2.1m; 2 Parramatta Rd, Forest Lodge, with a guide of $1.9m to $2.1m; and 26a Parramatta Rd, Forest Lodge, with a guide of $650,000 to $710,000.