The Sentinel Regional Office Trust has purchased 11 Argyle Street, Newcastle, NSW, a six level, 5 star NABERS rated building, comprising four levels of parking and two upper office floors with harbour views.
Incorporating 5,002sq m of office space, the building boasts one of the largest floorplates in Newcastle and is fully leased to national tenants NSW Government, Suncorp and Secure Parking. A new 5-year lease has been executed by Suncorp which commences in October 2016 and Secure Parking has leased all 342 car spaces (1:15sq m) for 20 years at approximately 25% below market value. The property benefits from a $400,000 façade upgrade undertaken by the vendor in 2015 and a $2.3 million tenancy refurbishment undertaken by the NSW Government in 2015.
Newcastle is a major city in the Hunter region, Australia’s largest regional economy which is projected to grow nearly 75% by 2036, with an output of approximately $64.8bn (Deloitte, 2015). The current population of the city has grown 5.5% since 2010 (economy.id, 2015), and the CBD’s population is expected to grow 80% by 2034 (The Urban Developer, 2014). This growth will encourage strong business activity and demand for office space.
$500 million has also been pledged by the NSW Government through the Newcastle Urban Renewal Strategy to revitalise Newcastle’s City Centre by delivering light rail and a new transport interchange. This has promoted business investment and seen significant development in the region. $4.8 billion is planned to be spent by Port Waratah Coal Services in delivering a fourth loading terminal in Newcastle, the world’s largest coal port, after receiving approval in October 2015.
Sentinel Regional Office Trust is an open ended Pooled Office Trust also compromising of CasCom Darwin, 200 Creek Street Brisbane, 8 Buller Street Port Macquarie, Jacana House Darwin, 139 Grafton Street Cairns and Arnhemica House Darwin.