This article is from the Australian Property Journal archive
THE Community and Public Sector Union has netted over $80 million from the sale of a fully leased eight storey office building in Sydney’s Haymarket, in a deal believed to have set a benchmark yield for the precinct.
A private buyer picked up 191 Thomas St. The union had bought the building 30 years ago and has operated from the property since.
Constructed around 1990, The 4,797 sqm building has ground floor retail and basement parking for 16 cars and is on 824 sqm of land within a future zone of high density under the draft Central Sydney Planning Strategy.
The property has a valuable 9B certification is anchored by education provider UTS Insearch, which occupies about approximately 75% of the property’s net lettable area. Total net passing annual income is circa $2.7 million with significant additional rental upside.
Savills and Colliers were joint marketing agents, and Charter Keck Cramer the transaction advisor. Charter Keck Cramer’s Bennett Wulff said Haymarket expressions of interest campaign closed at a record initial yield for a southern CBD office investment of 3.44%.
“With the devastating impacts of COVID-19 emerging and materialising throughout the campaign, the sale strategy was executed against the backdrop of unprecedented global and domestic share market volatility, intensifying travel restrictions and escalating social distancing measures,” he said.
Thirteen offers were received at close of the campaign, shortlisted and second round offers were obtained and contract exchange was achieved within four business days of close.
Offers were received from a relatively even mix of local and offshore purchasers, Wulff said.
The building 150 metres away from the new light rail and 250 metres from Central Station.
Late last year on the city fringe, Marks Henderson paid $92.75 million for a converted Darlinghurst warehouse at 19a Boundary St that has become a landmark creative hub, fully leased to 53 tenants including Donna Hay and creative agency Collider.
The property traded on an initial yield of 4.7%, and followed the Melbourne based investor’s purchase of a another fully leased refurbished warehouse, in Surry Hills, for $39.5 million, on a yield of 4.8%.
