BARANA Group is hoping to fetch more than $75 million from the sale of a dual-tower NSW Department of Family and Community Services offices in Ashfield, which has been given approval for an appetising floor-space ratio increase from 2:1 to 3:1.
Knight Frank’s Richard Garland and Dominic Ong are marketing the 8,424 sqm corner site in Sydney’s inner west, which has campus-style office buildings with a total net lettable or around 10,620 sqm and 289 car spaces.
Leases at the property run until February 2021 with passing net income of $3.54 million per annum with a one-year option.
The agents suggested the rent is below market, and an upward reversion could be expected at the end of the option term.
Barana acquired the site $47 million in 2015.
Garland said the property is expected to receive a high level of interest from local and offshore investors and developers.
Predominately zoned B4 Mixed Use, the site could incorporate a mix of residential apartments and retail space and has a potential gross floor area of 24,088 sqm as a result of the FSR increase.
Interest is also expected from parties in the corporate and educational sector and other owner-occupiers needing high-quality buildings in a park-like setting located on a main rail line, Garland said, while the property presents residential developers with a rare opportunity a site with a secure cash flow until at least 2021.
Ong said Ashfield is a popular residential suburb, with extensive existing infrastructure and amenities already in place, and 2-6 Cavill Avenue is situated in a prime location for residential developments as there is not an oversupply of product.
The site is a short distance from Ashfield train station, Ashfield Mall and a number of schools.
Expressions of interest close May 29th.
Australian Property Journal