Wollongong commercial property update.
Interest in the commercial property sector in Wollongong continues to grow, with the past few months seeing plans of a new A-Grade building revealed, expansion for Stellar Asia Pacific, another record breaking commercial sale and strong industrial property interest.
New A-grade office building earmarked for IMB Bank.
IMB Bank has released details of its plans to purchase and develop 47 Burelli Street Wollongong for its new head office in the Wollongong city centre.
IMB Bank is looking to purchase the site for $8 million and develop a purpose built head office that will allow it to consolidate staff working at multiple locations, as well as provide capacity for future growth. The building will have a sustainable design and support a range of flexible work and meeting spaces.
IMB Bank’s Chief Executive Robert Ryan said the decision was made after a detailed process to assess the bank’s future direction, growth plans and the requirements of its people. ‘We want to invest back into the Wollongong CBD, hence the commitment to build a new head office here’ he said.
Plans for the new building are subject to DA approval from Wollongong City Council, with the aim to have the new office opened by the start of 2020.
Stellar Asia Pacific opens second contact centre in Wollongong.
Growth in the shared services sector in Wollongong continues with Stellar Asia Pacific opening its second Wollongong contact centre in a newly fitted out space in the A-Grade office building at 280 Keira Street, Wollongong.
MMJ commercial leasing director Michael Croghan brokered the deal for the new Level 3 contact centre covering 1,370m2, not only providing additional capacity, but further potential to grow. ‘Stellar are a recognised industry leader and have been in Wollongong for many years operating a large contact centre. When a group like Stellar consider locations for growth, they look Australia wide. Wollongong was in competition with numerous other cities. Stellar know the Wollongong story, so their decision to invest here is therefore a clear vote of confidence in what we have to offer’ he said.
Corporate Square sells for $46.1 million.
Following on from last year’s record sale of 90 Crown Street for $43.9 million, national and international investor interest in the commercial property market in Wollongong has remained strong. The recent offering of A-grade office building Corporate Square at 43 Burelli Street attracted further investor interest due to its strong tenancy profile, security of income and significant rental growth upside.
The sale, managed by Knight Frank’s Ben Mostyn and Tyler Talbot on behalf of Folkestone in conjunction with CBRE, broke another record at $46.1 million and an initial yield of 7.38 per cent.
‘Over the past 18 months we’ve noticed a strong growth in demand for A-Grade office space in Wollongong’ said Tyler Talbot, Knight Frank’s Director Institutional Sales, adding that the new owners will benefit from growing demand for office space in Wollongong.
Recent sales at Portside Estate reflect strong industrial market.
The recent development of the industrial property project, Portside Estate at 41-47 Five Islands Road, Port Kembla, demonstrates a strong local industrial market with a healthy demand for good quality products, according to MMJ Director Tim Jones.
The 22 units in the industrial strata unit project sold out before construction completion, with about 70 percent to local business owners/occupiers and the remaining to investors. 'Owner/occupiers outshone the investors, but there were a lot more investors than we expected, which is a sign of pretty good market conditions when the investors are playing' he said.
The Sydney-based developer of Portside Estate was the first to develop industrial strata units in Port Kembla, and based on its success, has purchased another nearby site to develop Stage 2.