This article is from the Australian Property Journal archive
AS much as $80 million worth of commercial property in St Leonards is up for grabs, with a value-add office building proposition the latest asset to hit the market.
About $20 million is expected for the 126 Pacific Highway property, a 2,065 sqm building that also offers development potential and a 1:33 car parking ratio. It is predominately leased to Endemol Shine Australia until later this year. It is on an elevated 1,206 sqm site with panoramic Sydney Harbour views.
Colliers’ Tom Appleby, Joseph Lin and Steam Leung have the listing.
“Office middle markets assets with multiple value-add propositions and potential future exit strategies continue to be of strong interest in the current market. The persistent flight to experience thematic has resulted in older buildings with tenants vacating being withdrawn for refurbishment.,” Appleby said.
Lin said that value-add office groups and strata office developers are likely to show predominant interest, as are medical operators, particularly in mental health, respite care and pharmaceuticals, given the asset’s positioning adjacent to one of Sydney’s pre-eminent health hubs.
Recently sold commercial assets of a similar nature nearby have fetched around $9,000 per sqm. Pub baron Arthur Laundy will set up a new HQ in Lane Cove for his pub empire having just splashed out $33 million for the four-level, 4,096 sqm Aristocrat building.
The precinct is undergoing a major transformation with the development of the Crows Nest Metro Station and the affiliated St Leonards and Crows Nest 2036 plan, while the Arcadia-designed 4,750 sqm public plaza Wadanggari Park is set to open in the middle of the year, as well as the proposed $88 million redevelopment of Hume Street Park.
The listing of 126 Pacific Highway is yet another major move made in the busy local commercial property market. Last week, two contiguous commercial freehold investments, 50 and 52-56 Atchison Street, were brought to market through Colliers and CBRE with a low $30 millions price guide. The combined 1,081 sqm site permits about 7,000 sqm of developable mixed-use gross floor area.
Last month, Mirvac’s popular neighbourhood shopping centre in St Leonards Square came to market, also through Colliers, in conjunction with IB Property, with circa $25 million expectations.
In November, Dexus offloaded an industrial estate in St Leonards for $118.5 million, next to the North Shore Health Hub that it developed.
