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News release


Prestigious Sydney office building up for sale - secure income stream with potential for residential strata conversion

GPT Wholesale Office Fund appoints Jones Lang LaSalle to manage Expressions of Interest in respect of the sale of its interest in 179 Elizabeth Street

SYDNEY, 23 APRIL 2009 – Commercial property services firm, Jones Lang LaSalle, has been appointed by GPT Wholesale Office Fund, to manage the sale of its freehold stratum interest in 179 Elizabeth Street in Sydney’s CBD.
Jones Lang LaSalle is seeking Expressions of Interest closing 12:00 noon (AEST), Thursday 28th May 2009.
The prestigious commercial office building is located in Sydney’s CBD, adjacent to the Sheraton on the Park hotel and opposite Hyde Park and houses the well-known Tattersall’s Club (under separate ownership). The Green Building Council of Australia is a high-profile tenant.
Current zoning offers long term conversion potential for a mixed use asset, subject to council approval. Options could include the conversion of the upper office floors to premium residential apartments given the impressive outlooks and view corridors, and full commercial strata conversion of the low rise offices.
John Talbot, Australian Head of Capital Markets for Jones Lang LaSalle, said, “We expect this property to generate significant interest, given its prime CBD location, attractive lease profile and its long term residential/strata conversion potential.
“A property such as this, with its strong diversified tenancy mix and rolling expiry income streams is extremely attractive to investors in the current market.
“The long-term potential for residential or commercial strata subdivision to take advantage of the building’s location and views of Hyde Park and Sydney Harbour is also highly attractive, giving potential active purchasers a very attractive ‘value add’ opportunity,” said Mr Talbot.
The majority freehold stratum interest being sold consists of a total NLA of 14,926 sqm, of which 14,100sqm is office space. The remaining 826 sqm includes retail tenancies, with additional storage facilities, a loading dock and basement parking facilities for 107 vehicles.
The property is well tenanted, providing an average lease expiry of 4.9 years via income from the 21 office and 4 retail tenants within the building.

Fund Manager, Martin Ritchie confirmed that the sale process has been activated in response to interest received from a number of parties in recent months and the fact that the Fund’s interest in 179 Elizabeth Street does not fit the Fund’s longer term investment strategy with a focus on premium and new A Grade trophy style assets.

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