This article is from the Australian Property Journal archive
ASX-listed Event Hospitality & Entertainment has snapped up the two adjoining freehold buildings at 458-466 George St and Dudley House at 468-472 George St in Sydney’s CBD for $116 million on a yield of 2.1%.
Event acquired the properties, which has changed hands for the first time in over 30 years, from Moss Nominees.
Knight Frank’s John Bowie Wilson, Jonathan Vaughan and Tim Holtsbaum negotiated the sale.
The freehold properties include a three-storey building at 458-466 George St, and a seven-storey building known as Dudley House at 468-472 George St. The properties comprise a site area of 833 sqm and total net lettable area of 1,678 sqm (920 sqm of retail and 757 sqm of office space), 458-472 George St is currently 95% occupied, leased to several retail and commercial tenants with net rental income of approximately $2.45 million per annum as at May 2017.
It was a strategic purchase for Event as the properties are adjacent to its existing QT Sydney Hotel, State Theatre and 478 George St properties.
The acquisition will increase Event’s footprint to approximately 4,700 sqm with an 88 metre frontage to George St.
Managing director David Seargeant said it was a long-awaited opportunity.
“We have long sought to acquire these buildings to ensure control of the south-eastern corner of George and Market streets in Sydney and to crystallise the value that can be delivered through a future redevelopment of the properties owned by the Event Group,” Seargeant said.
Chairman Alan Rydge said the acquisition is a significant milestone in the history of the Event Group and the properties will complement Event’s extensive property holdings.
Subject to council approval, Event plans to undertake a mixed use redevelopment of the sites, including a potential expansion of the adjoining QT Sydney hotel.
The acquisition, prior to any operational improvements or redevelopment, will provide an annualised incremental EBITDA uplift of around 1.5 cents per share.
This sale caps off an active week for the Sydney market following the sale of The Exchange Centre at 20 Bridge St by Malaysia’s second largest pension fund Kumpulan Wang Persaraan (KWAP), to a Hong Kong buyer for $330 million to $350 million.
Australian Property Journal
