This article is from the Australian Property Journal archive
DEUTSCHE Bank is fast tracking plans to unlock its office investment in 140 Sussex St Sydney because of the imminent departure of ING Direct.
Recently the anchor tenant, ING Direct announced that it was relocating its head office to 60 Margaret St Sydney, owned by Mirvac and MTAA Superannuation Fund.
ING Direct signed a 10-year lease over approximately 10,030 sqm at 60 Margaret St and will move in later this year. The bank’s lease at 140 Sussex St will expire in 2017.
Agents CBRE’s Richard Butler, Josh Cullen, Mark Hansen and Sharon Yang said the offering capitalises the strong demand for residential development opportunities in prime CBD locations.
CBRE’s residential projects executive director, Justin Brown said the property’s development potential would be a major selling factor and the ING lease expiry in 2017 provides the perfect timing for a developer to capitalise on this mismatch while navigating through council planning.
The 19-level tower overlooking Darling Harbour and the new Barangaroo precinct has potential to be redeveloped as residential development. 140 Sussex St comprises 11,742 sqm of A-grade office space and occupies a 1,642 sqm site.
“We expect sophisticated developers, both onshore and offshore, private and publically listed, to show strong interest in the site, with a view to unlock its potential with a mixed use or residential development.
“140 Sussex St is a truly unique opportunity to acquire a significant footprint with the potential to develop a luxury residential development with sweeping views of the harbour,” Butler said.
“The property holds scope to accommodate a high end residential development incorporating up to 208 apartments over 35 levels, subject to council approvals.
“The sale of 71 Macquarie St and 1 Alfred St – both in Circular Quay – demonstrate the demand for centrally positioned sites, with investment appetite particularly strong for those sites with redevelopment potential,” he added.
On the back of a record year, selling more than 3,000 apartments in Sydney during 2015.
“The shift to high-rise apartment living has accelerated, with developers responding to the growing demand from Sydneysiders for vertical villages and super-tall residential towers, most notably for quality residential apartments close to good amenity.
“The number of Sydney residential towers completed or proposed since 2012 has already been greater than the whole preceding decade, however, a mismatch of supply vs demand continues amid constraints of being able to meet the excessive demand due to the shortage of suitable sites available for redevelopment,” Brown said.
Australian Property Journal
