Develco to cash in on Sydney office boom
Private company Develco has emerged as the latest company to capitalise on the rise in office values on Sydney’s north shore, putting an office building in Lane Cove on the block with hopes of selling it for more than $55 million.
Sydney’s CBD and North Sydney office markets are running hot and more investors are looking to suburbs as displaced tenants also seek new homes.
Develco was set up by Josef Reisinger in the 1970s to invest in real estate and undertake development projects and has commercial and industrial assets.
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The Lane Cove building spans 16,860 sqm and includes a nine-level office building of around 9250 sqm at 18-20 Orion Rd, and a separate land holding of 7922 sqm at 16-18 Orion Rd.
The land holding has received approval for a significant commercial development of 15,800 sqm.
The existing building is almost fully leased with a three-year weighted average lease expiry and tenants include Motorola, Netcomm Wireless and Dental Corporation.
The sale is being managed by Knight Frank’s Angus Klem, Arland Domingo and Dominic Ong.
The whole Lane Cove Business Park is set to benefit from the transformation of the North Shore with $73.4 billion being spent on infrastructure over the next three years. Mr Klem said the property held the potential to be transformed into a mixed-use space in future.
Built in 1991, the nine-level commercial office building has a readily subdivisible floor plate of 1100 sqm and includes 342 car parks.
This article originally appeared on www.theaustralian.com.au/property.
