This article is from the Australian Property Journal archive
A FULLY refurbished Surry Hills creative warehouse and apartment building has hit the market with expectations north of $50 million, with interest expected to come from institutions, funds and high-net-worth individuals, while Crystalbrook Collection is offloading one of its hotels close by.
The mixed-use offering at 276 Devonshire Street has 2,231 sqm of floor space and a fully leased income of circa $2 million. It is occupied by tenants including 3XN Architects, software company Dovetail, and disability services and support organisation Provider Choice.
It features 13 residential apartments completed just three years ago with expansive rooftop amenities, providing a diverse stream of income.
The island site is situated in CBD fringe, which is witnessing the evolution of the Tech Central precinct, and improved infrastructure and transport connectivity through the light rail system and Central Station.
Aussie tech unicorn Canva has just paid $123 million for a Surry Hills office building only a few metres from its current headquarters on Kippax Street.
Colliers’ Miron Solomons, Matt Pontey and James Girvan have the listing of 276 Devonshire Street.
Solomons said asset is “the best example of a repositioned heritage warehouse in Surry Hills that we’ve seen to date”.
“Its location directly next door to the iconic Brett Whiteley Studio is testament to the property and the region’s creative roots, and the substantial amenities accessible throughout the CBD fringe makes it highly desirable for both residential and commercial tenants,” Pontey said.
Expressions of interest close on 17th May.
Crystalbrook Collection selling
Also in Surry Hills, Crystalbrook Collection has announced it will sell the luxury Crystalbrook Albion hotel, as the group recycles capital to focus on its continued growth and expansion pipeline. The group will maintain management rights post-sale.
CBRE Hotels’ Wayne Bunz and Michael Simpson have appointed to steer the sale.
Opened in 2018, the hotel is on a 538 sqm freehold land parcel in a former school convent that was transformed into a five-star hotel offering. The boutique hotel comprises 35 rooms including one suite, a self-service bar and a rooftop garden offering panoramic views across Surry Hills and the city of Sydney.
“More than ever, hotel investors are looking for bespoke and boutique hotel offerings, and Crystalbrook Albion’s unique style and design, paired with its sought-after Surry Hills location, will appeal to a broad range of prospective purchasers,” Bunz said.
“The hotel attracts a mix of corporate clientele and both international and domestic leisure guests due to its proximity to key demand generators.”
Simpson said the hotel presents as0new and will require minimum capital expenditure in the medium-term, while providing the incoming owner with the benefit of tax depreciation benefits moving forward.
Expressions of interest campaign for Crystalbrook Albion Sydney close 12pm 25th May.
Last year, Paul Fischmann’s 8Hotels and business partner, property investor and developer Jonathan Hasson, sold the city’s first cross-laminated timber hotel – a 38-room, six-level building on Elizabeth Street – to a local operator for roughly $30 million prior to opening.
