Sydney Uni nets $62m from property sell-off, more to come
The University of Sydney’s property sell-off has peaked with the sale of a Glebe commercial building for $39 million, bringing to more than $62 million the amount its asset-disposal program has raised.
Over the past few months, Australia’s oldest university has sold nine properties – including terrace houses, student accommodation and an apartment building. It still has another three terraces and an empty lot on the market.
Agent Andrew Graham from Colliers said there was diverse interest in the six-storey building at 431 Glebe Point Road, which the university purchased for $14.8 million in 2006, and which is leased to the Woolcock Institute of Medical Research.
The campaign attracted 24 submissions from buyers interested in using it for commercial, residential, health and education purposes.
Built in 1927, the building was acquired as a long-term hold by a high net worth Sydney family, which has agreed to honour the existing lease currently returning $589,000 a year, a gross return of less than 2 per cent with the outgoings paid by the landlord.
Crossover in values
“We have seen a steady rise in capital seeking assets and there has been a visible shift in pricing with commercial and a range of other groups in play,” said Mr Graham, national director strategic advisory at Colliers, who marketed the building with James Cowan and Samantha Carroll.
“We are now seeing a crossover in values where commercial outcomes are matching that of residential.
“The result is a higher level of ‘cleaner’ submissions from prospective purchasers, with less emphasis on due diligence and conditional contracts which a residential bid generally requires.”
A University of Sydney spokesman said further property sales are being considered and that the funds raised will be used to fund education and research.
“We’re pleased by the successful sale of 431 Glebe Point Road, the proceeds from which will help support our core research and teaching into the future,” the spokesman said.
“We were also encouraged by the interest shown in the property and will continue our careful assessment of our off-campus properties to determine which are now surplus to our needs and therefore suitable for sale.”
