Login
iscover
The City of Sydney Council has acquired a heritage-listed property for $110 million through an off-market deal.
Woolstores in Alexandria, which consisted of three restored heritage-listed woolsheds repurposed into office spaces, was sold to the government body by RF CorVal on a 5.3 per cent net yield and a weighted lease expiry of 3.3 years.
Before the divestment, the property funds platform has held the woolsheds since 2015, when it paid $51.8 million and the building was in the final stages of being converted to offices.
Located just 15 minutes from the Sydney central business district and eight minutes to Sydney Airport, the recently purchased buildings are a walking distance from popular establishments and amenities such as Grounds Café, Green Square Station and Sydney Park.
Major tenants of the property include Living Edge, Swarovski, and Thyssenkrupp Elevator. The property is also extremely well serviced by public transport connections, as well as key arterial roads and the WestConnex interchange at St Peters, and offers easy access to the Greater Sydney area.
The transaction was completed by Steven Kearney and Mark Hansen of Cushman & Wakefield and Michael Crombie and Adam Woodward of Colliers International.
Mr Kearney described the Woolstores as a “high-quality commercial office investment”. He also highlighted that the property has a 5.5-star National Australian Built Environment Rating System (NABERS) energy rating, which aligns with the city’s long-term financial plan.
“The Woolstores has thoughtfully been constructed with a wide range of recycled heritage materials incorporated into a contemporary design providing good levels of character,” he stated.
RF CorVal head of transactions Oliver Picone said that the deal was a “great result for our investors”.
“We acquired the property from the original developer as it neared completion, basing our strategy on the unique nature of the heritage office space and Alexandria being an up-and-coming market with the potential for growth,” he stated.
“Our asset management team was then able to execute on this, by maintaining close to full occupancy over the whole investment period and driving the rents. They did a fantastic job in actively adding value to investment.”
Mr Crombie lauded the property’s redesign, stating: “The Alexandria Woolstores site represents the epitome of creatively designed office space — a true adaptive reuse conversion.
“The estate has always been successfully leased and the City of Sydney was quick to seize this opportunity off market.”
In a statement to other media outlets, a spokesperson for the City of Sydney said that the acquisition stacks up for the council’s broader investment and long-term financial strategy.
“The income from this type of investment helps to fund the city’s services and capital works projects, easing the burden on ratepayers,” the spokesperson stated.
Never miss a beat with 
Stay across what’s happening in the Australian commercial property market by signing up to receive industry-specific news and policy alerts, agency updates, and insights from reb.
Subscribe to reb Commercial:
Newsletter
