This article is from the Australian Property Journal archive
LUXURY brands could jostle with investors for a heritage listed Sydney CBD building, which has been put to the market shortly after Hermes paid $105 million to secure strata floors nearby for its Harbour City flagship.
Moments from Pitt Street Mall, the 106 King St corner property has offering 312.5 sqm across the ground floor, basement and four levels of office space, including a rooftop terrace.
The Victorian Italianate rendered brick building was designed by well-known architectural practice Sheerin & Hennessy in 1887 and heritage listed in 1989. The building forms part of a cohesive group of late 19th and early 20th century buildings and facades around the intersection of Pitt St and King St.
Surrounds King St and Castlereagh St, the precinct is a hub for global luxury fashion brands. Neighbour include including Dior, Cartier, Chanel, Boss, Tiffany & Co. and Bulgari, while Hermes purchased four floors within the strata building at 155-159 King St, and is converting into two levels and fitting out.
Retail brands pouring money into this precinct also include Louis Vuitton, which has spent $11 million refurbishing 365 George St, and Tiffany & Co.’s circa $30 million fit out at their new flagship store at 175 Pitt St, on the corner of King St.
Miron Solomons and Harry Bui of Colliers and Jordan Lee and Andy Hu of Savills marketing 106 King St, which goes to auction on 21st November.
“This landmark freehold would also make a statement as an amazing corporate or creative HQ and will be offered with some exceptional plans to upgrade and refurbish the existing and vacant office levels,” Solomons said.
“There has been a limited supply of assets of this class offered in the Sydney CBD over the last 12 months, which has further whet the appetite of savvy investors.
“I don’t think we’ve seen more than a handful of freehold buildings in the CBD, and certainly not in this precinct, offered to the market under $100 million for a few years now.”
Lee said local, national and international investors see high end retail as a status symbol and an asset class which is well known and respected across the Asia Pacific region, if not the world.
Potential buyers would be eyeing off the resurgence of the mid-city precinct, including the new light rail and Dexus’s $170 million retail transformation to the MLC Centre, which includes plans to revive the Theatre Royal, directly opposite 106 King St.
