ESR have appointed Colliers International’s James Barber, Frank Oliveri and John McCann in conjunction with Ray White Commercial’s Peter Vines and Victor Sheu to sell a commercial office building in the Liverpool CBD, which is expected to fetch over $50M.
The asset at 211 Northumberland Street was originally purchased by the company as part of the Denison Portfolio, that also included a building in Campbelltown.
The sale comes as ESR continue to realise the divestment of their non-core assets to focus on their growing industrial portfolio.
The 7,645sq m* NLA building sits in the centre of Liverpool CBD and is fully leased to the NSW Government Department – Family and Community Services – until 2022.
ESR also sold a commercial building earlier this year in Campbelltown for over $19M.
“We expect strong interest given the quality of this asset as well as the lack of opportunities in the market for investors,” said Frank Oliveri, Managing Director of Colliers International Western Sydney.
John McCann, National Director of Sydney Metro Sales, added that their recent $80M sale of 1 Fitzwilliam Street in Parramatta represented a circa five per cent return.
“The purchase was via a first-time entrant into the market from off-shore. There’s strong interest from off-shore buyers into Western Sydney given the government’s decentralisation plans from the Sydney CBD and also the infrastructure spend,” he said.
“With Parramatta currently booming, investors are seeking the next hot spot and given its proximity to the new airport and billions of dollars being invested in infrastructure in the South West, Liverpool was a very good option,” said Ray White Commercial NSW – Western Sydney Managing Director Peter Vines.