Centuria Capital Group, an investment manager, has recently sold an Eveleigh office building at a price exceeding its book value. The premiums obtained in this transaction highlight the robust demand for well-located commercial properties, particularly those benefiting from urban regeneration and their proximity to housing, schools, and universities.
The property sold was the Belltower office building, situated along Cornwallis St. Centuria managed to secure $18.25 million for the 1148-square-meter building, which represents a 14 per cent premium above its book value. The office building underwent significant refurbishment and was sold with vacant occupancy.
Originally purchased by Centuria in 2016 for $3.3 million, the Belltower formed part of the unlisted Australian Technology Park (ATP) Fund. This historic building, constructed in 1887 as the Manager Office for the Eveleigh Locomotive Workshop, featured a bell that signalled the beginning and end of the railyard working day.
During the early 2000s, the Belltower became part of a comprehensive regeneration masterplan aimed at transforming the area into a technology precinct. Today, the precinct houses prominent entities such as the Commonwealth Bank, Channel 7, CSIRO’s Data61, Cicada Innovations, and the University of Sydney Institute of Agriculture and School of Life and Environmental Sciences.
Centuria’s successful sale of the Belltower and the premium achieved demonstrates the attractiveness of properties located within thriving commercial hubs. The demand for such properties, which are well-connected and surrounded by amenities, underlines the growing trend of urban regeneration and the desire for convenient access to essential services.
Published 7-June-2023