This article is from the Australian Property Journal archive
A CHINA-based buyer has paid $22.6 million for a combined Carlingford site of 11 eleven houses, which has approval for a three-building, 120-apartment development with an end value of $100 million.
The deal represented one of several Sydney metropolitan commercial asset purchases by Asian buyers late in 2018.
Savills and Colliers International marketed the 7,843 sqm Carlingford property, having been appointed by receivers of Jin Lian Group Pty Ltd, McGrathNicol’s Barry Kogan and Katherine Sozou.
The site has four frontages and includes 19-23 Post Office Street, 2-8A Donald Street, 6-10 Tanderra Avenue and 10 Paul Place in Sydney’s north-west suburbs. It was put to the market with 42 pre-sales for the approved project, which will also include two levels of basement parking with 239 spaces.
“With five out of our past six deals at the end of last year secured by mainland Chinese and Hong Kong buyers, the sentiment is that this will continue in Q1 2019,” Savills’ New South Wales state director of metropolitan & regional sales, Tom Tuxworth, said.
“The Chinese buyer mandates we are currently dealing with are not reliant on local funding, and buyers have the ability to purchase with cash and settle quickly,” he added.
According to Knight Frank, 31% of Australian development sites were bought by Chinese developers in 2018.
Meanwhile, Sydney’s metropolitan market saw Asia-based buyers, in Singapore and Hong Kong buyers, respectively acquire office suites two and three at 175-185 Gloucester Street, within the heritage-listed Reynell Building in The Rocks, for $7.8 million, and the QE Foodstores boutique supermarket at 1/88 Alfred Street, Milsons Point, for a price believed to in the range of $6 million.
The deals were negotiated by Savills.
Combined, the Reynell Building suites cover nearly 800 sqm, while the QE Foodstores is on a corner site of 456 sqm and has a ten-year lease returning $281,400 per annum net.
“Sydney is still high on the agenda for offshore buyers who believe there is strong capital and rental growth.
“Asian buyers in particular assess value differently from local buyers, who are currently more risk-adverse and reliant on local funding,” Tuxworth said. “While the number of buyers engaging in these properties has declined since 2015, there are a number of new and established players in the market looking for well-located investments.”
Australian Property Journal
