Software billionaire to offload Sydney HQ
Richard White, software billionaire and chief executive of WiseTech Global, is offloading the Sydney company headquarters he bought and converted into offices from an old warehouse four years ago with price expectations of about $35 million.
The sale comes as part of a commitment by Mr White to cease doing private business with his public company by the end of FY 2021. As reported by Rear Window earlier this year, WiseTech Global paid White $1.95 million in rent during the six months to December 31, including $920,000 in rent for Sydney “office and storage space”.
The property, a purpose-built facility at 70-74 O’Riordan Street in Alexandria, is being offered as a sale-and-leaseback deal with the ASX-listed software company as the major tenant on a five-year lease.
It has a net lettable area of about 3850 sq m and is located on the Sydney CBD fringe in the business precinct of Alexandria. A $35 million price tag would represent a yield of 6 per cent.
Mr White, who is worth $3.31 billion according to this year’s AFR Rich List, bought the building for $12 million in 2017 before spent more than $14 million converting the space into modern offices for the company he founded in 1994.
“From the start, I wanted to create a state-of-the-art expansion of WiseTech’s already considerable presence at the location,” Richard White said.
“The building was designed and built with much care and attention, and complements the existing WiseTech tenancy and data centre assets that reside within the WiseTech O’Riordan St compound.”
The property is being marketed by Colliers International and Karbon Property.
Michael Crombie, national director of property sales and leasing at Colliers International, said while the CBD office market had been very quiet, COVID-19 had in fact had a positive impact on Sydney metro areas, such as Alexandria and nearby Mascot.
“Buyers are being drawn to South Sydney for its affordability, the incredible pre-lease opportunities tha are all COVID-safe, car parking ratios, public amenity and the style of buildings in Alexandria – walk up as opposed to using a lift,” Mr Crombie said.
He said he had seen more large commercial lease enquiries in 2020 than in all of 2019.
“It’s not just coming from the CBD; the enquiry pool is just as strong from the fringe markets of Pyrmont, Surry Hills and Redfern than that of the local area.”
“Potential buyers will be drawn to the security and strong tenure that this investment provides, which is particularly vital given the current environment,” he added.
Karbon Property’s James McCourt said many traditional CBD and fringe investors would be drawn to the property due to its “future optionality”.
“Whilst the current tenant is likely very long term, this asset in due course doesn’t have to be a single tenant building. The precinct already has a thriving ecosystem of multiple industries. Investors will value this future optionality, which is important in any large investment,” Mr McCourt said.
