The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
UPCOMING EVENT - INDUSTRIAL AND LOGISTICS SUMMIT 16 OCTOBER, SYDNEY
INDUSTRIAL AND LOGISTICS SUMMIT - TICKETS NOW ON SALE
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
1
print
Print
OtherClare BurnettFri 17 Feb 23

Council Snaps Up Refurbished Liverpool Office Tower

203 Northumberland Street, Liverpool

Stirling Property Partners has offloaded a Liverpool CBD tower block for a reported $55 million.

The Inner West Council has bought the B-grade office building at 203 Northumberland Street. 

It was marketed by Colliers late last year after Stirling undertook a refurbishment program and presented with 7290sq m NLA and a 4.7-year WALE. 

The council engaged Ernst and Young as its strategic property adviser and developed a set of criteria to procure investment properties to secure an ongoing income stream, a council spokesperson said.

“This property fitted these criteria—it is part of the council’s strategy to improve its long term financial position and ensure the Inner West’s financial sustainability.”

Liverpool had been identified by vendor Stirling Property Partners as a target investment “which will benefit from significant government investment” including Western Sydney International Airport and upgrades to Liverpool Hospital.

Stirling acquired the site for $46.8 million in September 2019 and invested in infrastructure improvements, according to head of property Scott Girard. 

“We replaced lifts and air conditioning throughout the building and did quite a bit of refurbishment on the floors for repositioning, and managed to get it to 4.5-Star NABERS Energy rating,” he said. 

null
▲ Stirling refurbished the B-grade office and subdivided the site for another mixed-use development.

Stirling also subdivided the land to create a second mixed-use opportunity on the site. 

“We subdivided an on-grade car park which was attached to the title of the office building and really, the value of the parts were greater than the whole,” Girard said. 

“We were able to realise value uplift through selling the on-grade parking as a mixed use development.” 

After holding onto the site over the pandemic and working on the upgrades, the sale to the Inner West Council provied a strong result for Stirling.

“It performed very well—rents increased by 27 per cent over our investment period, and the average incentive across the building was 18 per cent compared to metro markets at 40 per cent,” Girard said.

A so-called ‘flight to quality’ has led tenants to focus on A-grade and Premium office space, leading many owners of B-grade spaces to look to upcycling.

OtherOfficeInfrastructuredo not useAustraliaReal EstateDeal
AUTHOR
Clare Burnett
More articles by this author
ADVERTISEMENT
TOP STORIES
a land lease community home in white at a gemlife development, a type of home which could be the answer to the housing crisis
Residential

‘We are the Solution’: Land Lease Shake-Up Stirs into Life

Renee McKeown
5 Min
Korean coliving hero
Exclusive

Disconnection by Design: Why ‘Untech’ is the Next Big Amenity

Clare Burnett
5 Min
Global Shifts Redraw the Map for Australia’s Office Market
Exclusive

Office Eyes Slowdown as New Stock Supply Becomes a Trickle

Vanessa Croll
7 Min
Salta MD Sam Tarascio
Exclusive

Why Salta Won’t Break Ground on $400m Pipeline

Leon Della Bosca
7 Min
Exclusive

Precinct Proposals Bloom as Brisbane Middle-Ring Sheds its Past

Phil Bartsch
8 Min
View All >
Darwin Sentinel Industrial East Arm Deal hero
Industrial

Sentinel Property Expands NT Portfolio with $57.4m Buy

Phil Bartsch
Legal

Court Freezes Assets as $160m Property Scheme Unravels

Vanessa Croll
a land lease community home in white at a gemlife development, a type of home which could be the answer to the housing crisis
Residential

‘We are the Solution’: Land Lease Shake-Up Stirs into Life

Renee McKeown
Policy framework is in place, land is available, but there’s one hurdle to clear before the sector can works its magic..…
LATEST
Darwin Sentinel Industrial East Arm Deal hero
Industrial

Sentinel Property Expands NT Portfolio with $57.4m Buy

Phil Bartsch
2 Min
Legal

Court Freezes Assets as $160m Property Scheme Unravels

Vanessa Croll
2 Min
a land lease community home in white at a gemlife development, a type of home which could be the answer to the housing crisis
Residential

‘We are the Solution’: Land Lease Shake-Up Stirs into Life

Renee McKeown
5 Min
Industrial

Centennial’s Paul Ford: From Vision to Industrial Vanguard

David Di Marco
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/inner-west-council-office-tower-acquisition-nsw