Investa Property Group ("Investa") has confirmed that they are considering the sale of Centennial Plaza at 260 – 300 Elizabeth Street, Sydney as a result of strong recent leasing activity in the building and favourable market conditions.
Centennial Plaza is an A-grade, mixed use complex comprising three towers of between 10-16 levels, with a total net lettable area of 53,635 square metres. The northern tower at 260 Elizabeth Street recently underwent a $16 million refurbishment.
The offering would provide the opportunity to purchase a quality A-Grade Sydney CBD asset, occupied by a variety of major state and Commonwealth government tenants.
Michael Cook, Group Executive Capital Transactions & Commercial Developments at Investa said: “We believe Centennial Plaza’s strategic location in the Southern CBD, quality lease profile and its limited requirement for future capital expenditure make the opportunity particularly attractive.
While the complex may be offered in one line, each building is on separate title and has been built to a floor space ratio of 4:1, providing excellent potential for future re-development.”
Centennial Plaza is located directly adjacent to Central railway station, bus and light rail terminal, with immediate access to main arterial roads and walking distance to dining and entertainment amenity in nearby Surry Hills. Floor plates are designed around a central core, providing good natural light and open outlooks from all floors. The concourse area around the buildings provides tenants with recreational, open space areas and on-site retail.
The office component of the building is 100% occupied with major tenants including the Department of Veteran Affairs, Department of Health and Ageing and the Department of Immigration.
Pete Carstairs, Head of Research at Investa said: “The Southern Precinct of the Sydney CBD has recently outperformed other office locations in the city. Jones Lang LaSalle Research, as at Q4 2012, indicates that absorption has been running above average in this market for two years. This has driven vacancy in this location down to 3% - the lowest in the CBD. The Southern Precinct is now one of the tightest office markets in Australia.
As supply delivered to the market will be below average over the next two years, we believe the prospects for effective rental growth are positive in the near term,” said Mr Carstairs.