Navy operations will remain in the multi-storey commercial property on the corner of Station and Burelli Streets despite the sale, which could also see it given a face lift.

It’s the second Wollongong asset acquired by the private investment fund Abacus Nominee Services, showing the group has strong confidence in the region.

Travis Machan from MMJ Real Estate was involved with the company’s first Illawarra purchase around four years ago.

He said the company heavily researches the Australian market before they buy and while they had bought other investments around the country they maintained an interest in Wollongong.

“They recognise the potential and have witnessed the positive changes. These include, the expansion of Wollongong Central, new private hospital, Wollongong City Council’s investment with Crown Street Mall,” he said.

The property was marketed nationally and overseas for just over five months and received a number of inquiries from local, national and Asian investors.

“Over the past 18 months especially, Wollongong has become a region of interest for property investors nationally as we continue to receive new interest from out-of-town buyers,” said Mr Machan.

“The majority of large scale transactions that we have been part of now always include a significant percentage of foreign interest.

“We enjoy promoting the many attributes of Wollongong to the world.”

He said the new owners of the Navy building will be looking at ways to modernise the structure and better accommodate the current tenant.

“This is just another added benefit as it helps improve the standard of commercial office accommodation not only for the occupier but for Wollongong as well.”

Real Estate Institute NSW former president Malcolm Gunning said Wollongong was perfect for commercial investment because it is far cheaper than Sydney with better yields, it’s a university city, it still has manufacturing and a strong base of government tenants.

“Any foreigner who buys in Australia does their research and understands very well what their expectation is and what drives some of our regional cities,” he said.

“Wollongong would be better to invest in than say Adelaide, [Perth or Brisbane] who have have high vacancy rates.

“Wollongong has had its reduction [in industry] with BHP but it’s stabilised.”

Late last year nearby Goulburn had a resurgence of commercial and residential sales thanks to overseas investors.

Members of one Chinese family bought six homes in a six-week shopping spree, mostly on big blocks close to the central business district.

While former golf club Tully Park was sold for $1.7 million to an Indian based superannuation fund Maxie Wealth.