The University of Sydney lists Glebe medical research centre
The University of Sydney has revealed plans to offload a heritage-listed building home to the Woolcock Institute of Medical Research in Glebe.
The 2415sqm block at 431 Glebe Point Rd is expected to appeal to a range of investors and developers looking to cash in on property located close to the city centre.
High levels of interest is set to deliver the university a hefty payday with expectations the site could sell for as much as $40 million based comparable sales quoted by the selling agents.
A sale at that level would be a significant increased on the $14.8 million The University of Sydney paid for the Glebe landholding in 2005.
Situated on the corner of Glebe Point Rd and Leichhardt St, 431 Glebe Point Rd has 6934sqm of gross building area, including 43 basement car spaces, water views and significant street frontage.
The Art Deco building was constructed by Frederick Stearns & Co in 1927 for pharmaceutical uses with an extension added in 1948.
Colliers director of investment services James Cowan said strong interest was expected following unsolicited interest from investors and residential developers to Sydney University in recent years.
“They have decided to consolidate their properties on their main campus and accordingly are now inviting these parties to participate in an expressions of interest campaign,” he said.
“The interest is not surprising considering the rare site envelope, substantial existing improvements and sensational location.”
Interested buyer groups include general investors, commercial and medical owner occupiers, as well as residential developers looking to take advantage of the existing residential zoning
The Woolcock Institute of Medical Research has a three year lease of the building until 2024 with an option to extend the period by a year. Under the current deal, the medial research outfit is generating a $590,000 per annum in rent with yearly increased based on CPI.
Colliers’ Andrew Graham said the low interest rate environment and pent-up investment demand has seen long-term landowners such as The University of Sydney look to cash in on the market.
“Long-term landowners are increasingly looking to unlock existing assets to capture market buoyancy and reinvest this capital into bigger and better things.”
As a guide to price expectations, the agents referenced recent benchmark Colliers’ sales of the Best & Less head office in Leichhardt which sold for $29 million, 19-37 Greek St Glebe which sold for $43.4 million and 27-33 Goulburn St, Haymarket, which sold for $21.15 million.