This article is from the Australian Property Journal archive
THE City of Sydney is hoping to realise more than $200 million from the sale of a 1.2-hectare former council depot in Pyrmont, offered with a planning framework providing for more than 50,000 sqm of mixed-use space earmarked to include a childcare centre and indoor recreational centre.
CBRE’s Scott Gray-Spencer and Kelwyn Teo are managing the sale of the 14-26 Wattle Street property via expressions of interest closing late in October.
Ownership of the development will be transferred back to the City of Sydney.
Lord Mayor Clover Moore said the sale would help create much-needed public facilities for the area’s growing population.
“Selling land surplus to requirements will help the City respond to the growing recreation and daycare needs generated by high-density residential developments and the expanding Ultimo Public School,” Moore said.
The property is located near the soon-to-be overhauled Sydney Fish Markets, the harbour foreshore and Wentworth Park, and on the doorstep of the light rail.
Gray-Spencer said that through the sale structure, the successful purchaser would have the opportunity to secure development approval prior to settlement, substantially de-risking the project.
“From a residential perspective, the site benefits from its proximity to the CBD, Broadway Shopping Centre and Central Park, as well as direct connectivity to Sydney’s major universities including the University of Technology Sydney and the University of New South Wales via the light rail.
“The site also offers significant potential to accommodate businesses associated with the digital, IT, media and entertainment sectors, with the Pyrmont/Ultimo precinct already home to major corporates such as Google, Accenture, Domain, American Express, Channel Ten and Channel Seven.” Gray-Spencer said.
Tech giant Google acquired the Seven Network site at 38-42 Pirrama Road for a figure believed to be around $150 million in June. It is across from the workplace6 building that Google currently occupies, and Seven will be moving later this year to Redfern’s Australian Technology Park.
In July, a UBS Asset Management client put their seven-storey, A-grade commercial building of 12,568 sqm at 19 Harris Street for sale, looking to fetch more than $130 million.
Australian Property Journal
