90 Crown Street, Wollongong

 A striking and contemporary seven-storey office building of approximately 9,077 sqm.  It occupies a prominent corner position at the eastern end of the Crown St Mall, the main retail thoroughfare of Wollongong.  

 This is an A-Grade building in a prime location with a mix of high credit-worthy tenants paying increasing levels of annual rent and most outgoings, while the cost of our finance has been fixed for five years.

 The returns are backed substantially by leases to Government authorities such as Child Support Agency, RTA, Telstra, Office of State Revenue and the Department of Industrial Relations. We have successfully attained a DA to increase the net lettable area of the property through utilisation of unused balconies and roof areas. We now seek to negotiate a lease with existing tenants for the expanded areas before commencement.

 Exit strategies

Option 1 –     Telstra has been replaced by high credit rating tenant (Child Support Agency). Maintenance of the investment as a secure, long term, and increasing income generating investment.

 Option 2 –     Strata the building so that it can be sold to retail investors. In Year 5 the net income is estimated at $2,991,303. In the current market place it is estimated that a retail investor would be willing to acquire a commercial strata unit in this building at a cap rate of 7.0%. If the current demand prevails, the building would have a total breakdown value of $42,732,900 in year 5. This is 26% in excess of the current total purchase price