- Woolworths' national headquarters has hit the market, Sydney's largest suburban office offering since 2019
- Interest is expected to arise from local and international investors looking for long-leased office assets
- The property's long-term revenue from an ASX top 10 firm is projected to draw substantial interest from both local and offshore purchasers
- One Woolworths Way, Bella Vista is comprised of three office buildings connected by a central atrium and sits on nine hectares of land
- It offers a net lease to Woolworths and a weighted average lease expiry of 10 years from November 2021
Putting Woolworths' national headquarters to market, Inmark Asset Management is seeking to capitalise on worldwide investor demand for long-leased office assets.
The Sydney property is considered the trophy asset in the Australian/Korean investment and fund manager's global office core portfolio, which compromises US$3.25 billion (around A$4.22 billion) of assets under management around the globe.
The sale is the biggest Sydney suburban office offering since 2019 when Charter Hall and Singaporean sovereign wealth fund GIC bought Parramatta's Jessie Street Centre for $415 million and Starwood Capital and Arrow Property bought Chatswood's Zenith Centre for $438 million.
CBRE's James Parry, Flint Davidson, Stuart McCann and Michael Andrews, as well as Colliers' Adam Woodward, James Mitchell, and James Barber, have been recruited by Inmark to oversee the sale of the Woolworths complex, which spans 44,911 square metres.
The property's long-term revenue from an ASX top 10 firm is projected to draw substantial interest from both local and offshore purchasers.
"The weight of capital seeking secure, long-term income streams has doubled over the past 12 months, with a heavy influence from offshore domiciled investors looking to Australia as a safe haven given our strong economic performance," Mr Woodward said.
"Non-discretionary food-based and every day retailing in Australia has boomed throughout the COVID-19 pandemic, and Woolworths has significantly outperformed the ASX 20 during this time, highlighting the strength of the covenant."
One Woolworths Way, Bella Vista is comprised of three office buildings connected by a central atrium and sits on nine hectares of land.
In accordance with the basic masterplan approval, there is also around 28,000 sqm of commercial office floor area available to be subsequently developed.
The complex has floorplates covering over 3000 sqm, as well as considerable employee amenities such as an on-site Woolworths Metro grocery, a gym, café, athletic facilities, a substantial data centre and over 3000 parking places.
It offers a net lease to Woolworths and a weighted average lease expiry of 10 years from November 2021.
The property's quality and extensive on-site infrastructure and facilities, according to CBRE's James Parry, will be strong investor drawcards.
"The asset is situated in the strategic North West Priority Growth Area, encompassing one of Sydney’s largest working populations," Mr Parry said.
"It is positioned to capitalise on the newly opened Sydney Northwest metro line and the heightened focus on hub and spoke locations such as Norwest/Bella Vista, which offer high quality office accommodation, relative affordability and multiple transport options."