This article is from the Australian Property Journal archive
TWO adjacent commercial investment properties, spanning a combined 2,304sqm site in the North Sydney CBD are up for grabs with price expectations exceeding $110 million.
The office and retail investments plus DA-approved site, are located at 116 Miller Street and 173 Pacific Highway respectively.
Dominic Ong, Paul Roberts, Linda Zhu and Will Brassil from Knight Frank have been appointed to take the assets to market via an expressions of interest campaign on behalf of the vendor, Maville Bay Pty Ltd.
The recently refurbished 116 Miller Street is an eight-storey A-Grade office building with retail on the ground floor has 10,098sqm of net lettable area.
The property is occupied by blue-chip tenants including ANZ Bank and Commonwealth Bank of Australia.
“These assets have a history of strong occupancy by long-term tenants,” said Ong.
“116 Miller Street is 66.4% leased to diversified and blue-chip assets, and there is an excellent opportunity to capture higher market rents on lease expiries, with a WALE of 1.38 years by income.”
The estimated fully leased net income for 116 Miller Street is circa $9.35 million per annum, with strong rental growth history and prospects.
The vacant four-storey boutique commercial office building at 173 Pacific Highway is now a development site with approval an additional 10,000sqm of office space.
“173 Pacific Highway is now fully vacant and offers investors the ability to reposition through refurbishment from a secondary grade asset to an A Grade asset or to undertake the approved development on the site,” added Ong.
Alternatively, it could be used for a build-to-rent scheme, with plans already drawn up by Woods Bagot for 142 apartments and 12,090 sqm of residential and retail GFA, subject to council approval.
“Opportunities to purchase freehold properties in North Sydney don’t come along very often, particularly in a location like this, directly opposite the new Victoria Cross Metro station due for completion this year, and with access to existing transport at North Sydney train station. As a result, we expect strong demand,” said Ong.
The expressions of interest campaign for 116 Miller Street and 173 Pacific Highway is due to close on 20 March, 2024.
