Centrelink office garners $53m
In a sign of deals still being completed, an office in Liverpool’s CBD leased by Centrelink has been sold for $52.5 million to a private investor.
The 211 Northumberland Street property is a 7654-square-metre building, home to Centrelink, and was sold at a passing initial yield of 6.59 per cent on behalf of vendor ESR.
The four-level building has a four-star NABERS rating and a weighed average lease expiry of 3.04 years, with easy access to the Hume Highway.
John McCann, James Barber and Frank Oliveri of Colliers and Peter Vines and Victor Sheu of Ray White Commercial advised on the sale.
Mr McCann, national director of investment services at Colliers International, said there had been strong demand in Liverpool over the past 12 months, with the new airport in close proximity and the shortage of good-quality investment stock “meaning 211 Northumberland Street was very well received by the market”.
Another recent deal was the on-market sale was the Leichhardt Collection, a sale and lease back on behalf of Best and Less.
Colliers International’s James Cowan and Matthew Meynell brokered the $29 million at a passing initial yield of 4.63 per cent.
Mr Meynell, head of investment services Australia, said it had become apparent that property was relatively more attractive than cash or equities and “our recent campaigns have displayed a level of confidence in this asset class amidst the current market conditions”.
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