Two Telstra exchange buildings — one in Lidcombe and the other in Merewether — have sold at auction in Sydney.
The sale price for 98 Parramatta Road, Lidcombe, was $4.5 million. The site at 125 Ridge Street, Merewether, fetched $995,000. Both sold under the hammer.
The properties, both operating as exchanges and data centres, were among five offered for sale at the in-room auction event held in Ray White Commercial’s head office at King Street on Wednesday, April 11.
Bidding for the Lidcombe site started at $2.5 million. Four bidders placed a total of 47 bids.
After the third call at $4.4 million and with auctioneer Jason Andrew’s gavel raised, a last-second bid of $4.41 million from the eventual underbidder kept the auction going.
Three more bids led to the final sale price.
Ray White Commercial NSW’s Joseph Assaf, Samuel Hadgelias and Jeff Moxham sold the property under instruction from Charter Keck Cramer as transaction advisor.
The 1939sqm site with a single-storey brick building of 1564sqm was sold with a leaseback to Telstra until 2022.
Bidding for the Merewether property started at $500,000. Nineteen bids were placed by several parties, both by phone and in the room.
The 735sqm site on Newcastle’s fringe is also leased back to Telstra until 2022.
Ray White Commercial Newcastle’s Lee Follington and Kyle Cable, along with Mr Hadgelias, were the selling agents.
A third Telstra property in San Souci is for sale separately through Ray White Commercial NSW by expressions of interest.
The three other properties on yesterday’s auction schedule — a development site in Wolli Creek with DA approval for a residential project; a passive commercial investment operating as the Petersham Inn and a freestanding retail-commercial building in the Parramatta CBD — were passed in.
Interested parties are in talks with Ray White Hotels and Ray White Commercial NSW for all three properties.