The Zenith, located in Chatswood on Sydney’s North Shore, is to be sold by Knight Frank and CBRE on behalf of owners Centuria and a private fund managed by BlackRock.
Comprising of two buildings situated on a site of approximately 7,990 square metres the property has price expectations of over $400 million.
The Zenith is a prominent A-grade asset with circa 44,102 square metres of NLA set across 21 levels. 100% occupied and with a strong WALE of 4.4 years with quality tenants including Property NSW, Commonwealth Government of Australia, Lendlease and Sage.
According to Knight Frank’s Tyler Talbot, Partner, Institutional Sales, Sydney Metro, NSW The Zenith is expected to receive significant interest from both local and offshore investors.
“The Zenith provides a unique opportunity to acquire a premium landmark asset with a strong tenancy profile and significant untapped growth and value add potential”
“The investment will show a purchaser a significant yield premium to both Sydney and North Sydney CBD’s, while also capitalising on the continued strong Sydney Metropolitan rent growth , driven by increased demand and the Government’s record infrastructure spending”
“Australia remains an attractive global investment destination with new capital inflows remaining solid for quality assets” concluded Mr Talbot.
The Zenith is strategically located at 821 Pacific Highway, with access to Chatswood’s excellent public transport links and surrounding amenities, said Michael Andrews, NSW State Director, CBRE.
“Chatswood has evolved into a dynamic mixed-use precinct, characterised by major commercial, retail and residential developments, while the Government’s continued investment into infrastructure has reinforced the suburb’s position as a major centre on the Sydney’s North Shore. Prime office rents are 50% less than similar assets in the Sydney CBD and the soon to be completed Sydney Metro, located within 150m of the Zenith will decrease travel time to Barangaroo by 66% to only 11 minutes. Trains will depart every four minutes making Chatswood the most connected location across Metropolitan Sydney.”
“We have seen the area becoming increasingly popular amongst multi-national companies due to it’s unrivalled retail amenity, with over 200,000 sqm of high quality retail being a strong drawcard for corporate tenants. The office vacancy in Chatswood is at it’s lowest levels since the year 2000 at circa 5.5%, however, with strong tenant demand and no new major commercial projects in the pipeline, vacancy is expected to continue to fall below 5% by 2020’
“This is a rare opportunity to buy one of Australia’s best metropolitan assets that will offer the new owner a tremendous opportunity to access the continued strong Sydney rental growth story” concluded Mr Andrews.
The property is being marketing for sale by Knight Frank’s Tyler Talbot and Ben Schubert and CBRE’s Michael Andrews and Scott-Gray Spencer.