This article is from the Australian Property Journal archive
HOTELIER Kim Maloney has lobbed adjoining buildings in Sydney’s midtown to the market, representing one of four assets under $100 million offered in the precinct over the past two years.
The buildings, 114 Castlereagh St and 139 Elizabeth St, are metres from Westfield Sydney, and close to luxury retailers including Prada, Cartier, Gucci, Dior, Van Cleef & Aprels and Hermes, as well as Pitt St Mall.
The seven storey 114 Castlereagh St retail and office building, fronting Elizabeth St, is leased to the St James Hotel on the lower ground level, ground level and the first level.
139 Elizabeth St is a four storey building, housing Levendi Jewellers as the major tenant over the ground and lower ground level retail component, and is directly opposite Hyde Park and St James Station.
JLL’s James Aroney and Mitch Noonan have been appointed to sell the asset via expressions of interest closing on 10th June.
“We expect these assets to generate significant interest from high net worth individuals as well as value-add investors who appreciate assets such as this are extremely scarce and rarely come onto the market,” Aroney said.
114 Castlereagh St can be repositioned and 139 Elizabeth St redeveloped for boutique residential or mixed use.
Noonan said there has been continued interest in CBD markets despite the recent volatility in various alternative asset classes, particularly for assets underpinned by strong fundamentals, defensive income in core locations and close to transport nodes.
Midtown is currently undergoing significant investment. David Jones’ is spending $200 million on refurbishment of its Elizabeth St store, while Scentre Group and Cbus’s redevelopment of the former David Jones Market Street store that will become an extension of Westfield Sydney with 12,000 sqm of new commercial premises and 101 apartments, due for completion in 2022-23.
Also close by is the Pitt Street North Metro Station and office tower development by Oxford, Grocon and CPB Contractors, which will include a new 40,000 sqm office complex above the new metro station by 2024.
