Ryde office building sale sets market precedent

The $9,250,000 sale of a two-storey freehold office building in Ryde has set a benchmark for the area as one of the largest investment sales in the suburb in over a decade.

CBRE’s Ray Ahsan and Lord Darkoh brokered the deal for 19-27 Devlin Street, with the sale price reflecting a 6.5% yield.

Mr Ahsan said the property, being the sole government-tenanted freehold within Ryde, attracted significant interest from local and offshore investors. It was ultimately sold to an undisclosed cash buyer in an unconditional transaction with an expedited settlement.

The building, situated just 250 metres from Top Ryde City Shopping Centre, was purpose built for The Commonwealth of Australia, with Services Australia the sole occupant of the building since its construction in 1991. With a gross lettable area of 1,284sqm on 1,437.5sqm of land, the property has a 100% occupancy rate and a current net income of $601,440 annually.

Mr Darkoh said, “The sale of this property reflects the ongoing demand for stable and well-located investment opportunities. The fact that it has not changed hands in a decade further demonstrates its desirability.”

Mr Ahsan added, “The secure tenancy of Services Australia, combined with the prime location, presented an exceptionally attractive opportunity for investors. Several other firms had previously attempted to sell the asset without success. Our local expertise and strategic approach enabled us to secure an outstanding result for our offshore-based client.”