This article is from the Australian Property Journal archive
FIFE Capital is moving to offload iconic The Castlereagh Club, home to the City Tattersalls Club in the Sydney CBD, three years after acquiring the property.
Located at 197-199 Castlereagh Street, forming the podium of the Victoria Tower residential complex, the four-level strata holding has 2,622 sqm of floor space fully leased to the City Tattersalls Club until 2031 with 10 years of options and fixed 3.5% annual rental increases.
The Castlereagh Club sold the property in 2019 for $19.85 million with a leaseback and undertook a $5 million-plus renovation. The venue has more than 100 gaming machine entitlements and as a sports-orientated facility also includes a club-owned World’s Gym and sports bar, and will be complemented by their fine dining and hotel destination at Pitt Street, designed by celebrity chef Colin Fassnidge, which is currently closed for development.
Frederic Le Fanue, Bridhe Woods and Jack Harrison of Cushman & Wakefield and James Aroney, Sophie Tieman and Willem Watson of JLL have the listing.
Watson said the attractive long weighted average lease expiry comprising an initial lease term of 12 years with about nine years remaining and 10 years of options ensures long-term income security, and will be a key attribute for savvy investors, looking for a safe haven CBD asset.
He said triple net lease and long WALE with guaranteed rental growth had already captured the interest of a number of local and offshore investors.
The property is located within the core of the Sydney CBD and is 200 metres to Town Hall station, QVB and George Street.
Harrison said the offering features a highly desirable net lease structure, providing a “clean” income profile with a ratchet clause at options for a true “set and forget” investment.
“The asset sits in a liquid investment class within Sydney’s CBD and presents to an extremely high standard following the recent major CAPEX upgrades; we anticipate this opportunity to be highly sought after by a multitude of buyers both domestic and offshore.”
“There is a scarcity of quality investment offerings within the Sydney CBD, particularly at this sub-$50 million price point.”
