Financial Review rich-lister and owner of WiseTech Global Limited, Richard White is selling his company headquarters.
The purpose-built facility at 70 -74 O’Riordan Street in Alexandria is being marketed by Colliers International and Karbon Property and is anticipating prices of circa $35 million, representing a 6% yield.
Mr White originally purchased the building for $12 million from Colliers in May 2017 and spent more than $14 million converting the space into a brand-new state of the art office building to house the company he founded, WiseTech Global.
The property is tenanted by tech company WiseTech Global Limited (ASX:WTC), which has been touted as Australia’s next Atlassian. The sale is part of a commitment by Richard White, to exit all related party transactions.
Richard White said, “From the start, I wanted to create a state-of-the-art expansion of WiseTech’s already considerable presence at the location. The building was designed and built with much care and attention and complements the existing WiseTech tenancy and data centre assets that reside within the WiseTech O’Riordan St compound. The staff and customers love it.”
Colliers anticipates the non-aggressive yield and superior covenant in Alexandria’s most premiere street to appeal to prospective buyers.
“Potential buyers will be drawn to the security and strong tenure that this investment provides, which is particularly vital given the current environment,” said Michael Crombie, National Director, Property Sales and Leasing at Colliers International.
“COVID-19 has actually had a positive impact on commercial metro office markets, especially Alexandria and Mascot, in fact we have seen more large commercial lease enquiry in 2020 than we did in all of 2019.”
“Most of the enquiry is either 3,000m², 5,000m² or 10,000m² in size, and is not just coming from the CBD; the enquiry pool is just as strong from the fringe markets of Pyrmont, Surry Hills and Redfern than that of the local area.”
“Buyers are being drawn to South Sydney for its affordability ($500-$750 per sqm), the incredible pre-lease opportunities which are all COVID-safe, car parking ratios, public amenity and the style of buildings in Alexandria – walk up as opposed to using a lift.”
Karbon Property’s James McCourt notes that many traditional CBD and fringe investors will be drawn to the asset due to its future optionality
“Whilst the current tenant is likely very long term, this asset in due course doesn’t have to be a single tenant building. The precinct already has a thriving ecosystem of multiple industries. Investors will value this future optionality, which is important in any large investment”
Expressions of interest for 70 -74 O’Riordan Street, Alexandria close Wednesday, November 11 2020 at 4pm.