This article is from the Australian Property Journal archive
A PRIVATE Hong Kong investor has made a double-play on Sydney CBD’s York Street, paying $22.5 million for the five-level building at number 73 soon after they bought 18-20 York Street.
Knight Frank’s Jonathan Vaughan and John Bowie Wilson negotiated the latest deal, with both sales coming at around $17,000 per sqm and achieving yields of circa 4%. The investor has now paid more than $50 million across the purchases.
The five-level, 1,281 sqm building at 73 York Street is on a 341 sqm site and includes Oscar Hunt Tailors, Mojo Record Bar, One Tea Lounge & Grill and Migration Alliance among its tenants.
Vaughan said the building provides the style of creative office accommodation that is in short supply and high demand for occupiers focussed towards generation Y and Z workforces.
“We expect this will be positively reflected in the building’s investment return going forward.”
Bowie Wilson said there had been increasing interest from private Asian investors in the CBD’s western corridor, in particular York Street, as it offers the creative heritage accommodation that is performing “particularly well” in the market at the moment.
“This precinct of the CBD is also attractive to private investors as the buildings tend to be smaller in size, and therefore offer investors relatively good value acquisition opportunities.”
Meanwhile, earlier this month a private company reportedly linked with gambling identity Loi Keong Kuong, owner of Macau’s Rio Casino, paid $265 million to real estate group Markham for the 179 Elizabeth St tower opposite Hyde Park.
The deal for the 21-storey, 15,017 sqm 1992 building was struck at a passing yield of 5.17%.
Australian Property Journal
