A super prime, fully leased asset to Central Queensland University with over 8 years remaining on the lease, located at 400 Kent Street, Sydney CBD has been listed for sale.

The expression of interest sales campaign will be handled exclusively by Steven Tsang and Richard Butler of Stanton Hillier Parker. 

The 11-storey, 10,460 square metre building with basement parking for 10 vehicles sits on a 1,175 square metres site with 56 metres of frontage to Kent Street. 

According to Stanton Hillier Parker’s Steven Tsang, Capital Markets, Australia, “The timing of the sale of 400 Kent Street, Sydney is opportunistic.

400 Kent Street, Sydney is securely leased to Central Queensland University with 8 years remaining on the initial 14.5-year lease and a passing income of approximately $8.46 million per annum net.

The property has served as the flagship Sydney campus for the Rockhampton-based University since 1993”.

“The diversity and multicultural environment, the proximity to major transport services at Town Hall Station,

Darling Harbour’s abundance of hospitality and recreational amenities, coupled with the lifestyle benefits of being in the most beautiful harbour in the world, are compelling reasons for over 3,000 students enrolled at the CQU Sydney Campus”. Mr Tsang said.

CQUniversity was founded in Rockhampton, Queensland in 1967.

Today the University is the largest regional-based university in Australia with over 33,000 students enrolled across 13 campuses and provides a range of vocational, higher education and research pathways for domestic and international students from over 85 countries. 

Richard Butler, Managing Partner, International Capital Markets, Stanton Hillier Parker added, “A new wave of investors are exploring the alternative, education real estate sector.

Sydney is continuing to attract students from around the world as students are returning to face-to-face learning.”

According to The Australian Bureau of Statistics, international student enrolment numbers increased to 703,245, compared to 578,930 for the same period in 2019 (year to date February). The education sector is Australia’s fourth largest export behind Iron Ore, Coal and Natural Gas. 

The CQUniversity Sydney campus offers lecture theatres, high-tech multimedia labs, state-of-the-art medical sonography and echocardiography labs, ultrasound equipment, a library, break-out spaces for students, and classrooms throughout the building. 

The property has been asset-managed by Terraform Capital on behalf of the building’s owner from Hong Kong.

The demand for the education-backed real estate sector is heating up.

Earlier this year Singaporean fund manager Cambridge RE Partners made their maiden acquisition into the local market with the purchase of Taylors House in Sydney’s Waterloo.

The Taylor College campus was sold by Growthpoint Properties for $86.95 million. 

In October 2023, Singaporean REIT, Keppel’s private fund, the Keppel Education Asset Fund, backed by institutional investors and sovereign wealth funds, secured two education assets in Sydney for a total of approximately $198 million, including a forward purchase agreement deal in North Sydney. 

Mr Butler further added, “A blue-chip, whole-building Australian University tenant, with over 8 years remaining on their lease and fixed annual rental increases until 2032 is an absolute rarity in the Sydney CBD with the potential of longer-term redevelopment”.

The Expression of Interest sales campaign for 400 Kent Street starts in the coming days and is set to close in early July 2024.
 

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