Westpac Call Centre Sale
A large Westpac call centre at Concord West has been sold recently by a company associated with AMP Capital in an off market deal for $104M. The 3.2ha site sits alongside the Concord West railway station and was acquired by the vendor in 2012 for $52M. The new purchaser of the site is a private company, Concord West (Property) Pty Ltd.
The Westpac facility comprises a 16,580sqm single level call centre purpose built for Westpac in 1987. The site includes parking for 480 cars, a gym, basketball court and child care centre.
According to the Knight Frank's sale assessment in 2013, the lease to Westpac was due to expire in 2022. Assuming the lease conditions remained the same, the passing yield on the recent transaction would be circa 5.0%.
The North Strathfield to Rhodes corridor has seen an increase in activity over the past 12 months, buoyed by the improving infrastructure in the region.
The Yuhu acquisition of the BakeHouse Quarter (which settled in April 2019) for $380M set an unprecedented value for a 6ha site in the metropolitan area at $6,283/sqm of land area. The Bakehouse Quarter has a number of tenants including Fitness First, Arnotts, IGA, WOTSO Workspace, AMF Bowling and Pancakes on the Rocks. Along with these major tenancies there approximately 68 further tenancies. The sale price reflected a yield of just 3.5% on the passing income, however a premium appears to have been paid for further development potential of the site. The site contains items of heritage value so further development will mostly be constrained to undeveloped part of the site.
Further north at Rhodes, computing giant Hewlett Packard brought in well-established Sydney developer Billbergia in a joint venture arrangement to transform its Rhodes site into a $1 billion mixed use development by sharing the uplift in the value of the 3.4ha site when rezoned. The land alone was reportedly worth as much $150 million. Billbergia are deeply entrenched in the Rhodes development scene with projects at Rhodes Central and across the bay at Wentworth Point.
Interest in the region has increased following the State Governments decision to locate a Metro Rail interchange station at either North Strathfield or Concord West. A final decision has not been announced however indications suggest it is more likely to be a North Strathfield. The two stations are just 1km apart so any Metro Rail interchange will clearly benefit the region which will provide a more direct link to the CBD and Parramatta and then likely further west to the Western Sydney Airport.
Any parties making further enquiries in relation to the transaction, may wish to contact us.