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News release


Prime Waterloo investment expected to achieve $40 million-plus

Located across the road to South Sydney’s sought-after Green Square town centre, the property newly on offer provides a strong diversified investment plus flexible development options

​SYDNEY, 23 September 2014 – A prime investment property located at 1029-1035 Bourke Road and 723 Elizabeth Street, Waterloo is newly announced to the market, and is expected to achieve a sale price in excess of $40 million.

The property comes to the market off the back of the sales of over $1 billion of residential development sites managed by JLL across metropolitan Sydney in the past 12 months. JLL’s Head of Metropolitan Sales and Investments for NSW Sam Brewer and Colliers International National Director of Industrial Michael Crombie are handling the transaction.

According to Mr Brewer, the property’s high-quality tenancy mix offers significant value – which, along with flexible development options, is a point of difference in the current market. 

“A huge key differentiator to other properties in the area is that it has a high value at present based on its current income stream of prominent tenants, including Oroton Group, Tarocash, Versace Home and more. The tenant mix will present as an attractive asset to many investors, aiding the property in achieving an aggressive yield.

“There is an opportunity to refurbish common areas within the investment property which could lead to significant rental growth. In addition, a small proportion of the site – approximately 1,300 sqm – has the opportunity for immediate residential development,” said Mr Brewer.

The property, located just 200m from Green Square Station, is in a prime location to sustain future investment use, or offers a strong location for future residential development. Green Square Station is just one train stop from Central Station, providing direct access to the Sydney CBD.

Michael Crombie has advised, “The beauty of this opportunity is that it has immediate solid cash flow, and can be held long-term as a commercial/retail investment, with some immediate development opportunity. However, as the underlying land value also stacks up on a residential basis, a developer can stage the development as the leases expire.

“Rentals within this investment property are currently as much as 40 per cent below those found in comparable properties within the neighbouring region of Surry Hills and Waterloo, which will provide any new incoming purchaser with the ultimate value-add opportunity and endless possibilities over the next few years.” 

According to Mr Crombie, “South Sydney will see some serious rental growth in general over the next 24 months, as the impact of industrial site sales to a higher and better use as residential sites greatly impacts the availability of stock, which will in turn increase net rents across the market.  1029-1035 Bourke Road and 723 Elizabeth Street, Waterloo is also in a solid location with public transport access to the Sydney CBD in a matter of minutes and across the road from the Green Square town centre,” said Mr Crombie.

Mr Brewer said there is a limited amount of creative space in left in Waterloo. “Along with surrounding suburbs, Waterloo was previously known for its vibrant and dynamic commercial and industrial uses, providing a hub for creative users. This type of creative space has become scarce due to the demolition and re-development of existing properties which have become residential-focused, making this offer a rare proposition.” 

Mr Brewer and Mr Crombie anticipate interest to come from both local and offshore investors and developers.