The Zenith at Chatswood has beenlisted for sale on behalf of the co-owners DEXUS Property Group and GPT Wholesale Office Fund.
The Zenith was regarded as one of the premier office assets on Sydney's north shore. The award winning development comprises twin towers, each of 21 levels, providing a total net lettable area of 44,389m².
The Expressions of Interest sale campaign coincides with forecasts that Sydney's suburban office sector will outperform as an increasing number of existing buildings are withdrawn for residential conversion. Stock withdrawals on both the north shore and throughout the overall suburban Sydney market are beginning to take effect, particularly in North Sydney, St Leonards and Chatswood.
This is having a positive impacy on vacancy rates, which will flow through to rental growth and provide the basis for enhanced total returns. During 2014, Chatswood outperformed all other Sydney office markets after vacancy fell from 13.5% to just 8.2%.
The Zenith has a history of strong tenant retenation, with several tenants on second and third generation leases. The current occupancy is approaching 95% with blue chip tenant roster including Lend Lease, Infor Global Solutions and Fletcher Building as well as a mix of Federal and State Government occupiers. The complex occupies a significant site of just under 7,990m² and offers the potential for commercial or residential expansion, in addition to future hotel use.
It has been commented that the opportunity to acquire a landmark suburban asset with a near 95% occupancy rate is extremly rare, particularly one that offers alternative exit options via a potential future mixed-use development. The Zenith is situated at 821-843 Pacific Highway at the geographic heart of Sydney's North Shore. The complex benefits from user friendly floor plates, outstanding views and a high parking ratio. Superior services include an on-site concierge, end of trip facilities, conference facilities and a childcare centre.
Source: Jagonal - Tuesday 26th May 2015