This article is from the Australian Property Journal archive
THE heritage-listed Campbell’s Stores, an iconic waterfront dining and entertainment venue on the edge of Sydney Harbour is expected to attract international and local buyers.
CBRE’s James Douglas and Harry George, together with Carl Molony and Philip Gartland from Stonebridge are managing the sale, which is expected to sell for around $80 million.
Nestled between the Sydney Harbour Bridge and the Opera House, within The Rocks’ precinct, Campbell’s Stores, was built in 1851-1852 and underwent a significant $54 million restoration and refurbishment completed in 2019 which involved the entire building being reinstated.
The building has a net annual income of $5.1 million with a 6.7-year WALE (by income) and is home to 6 Head 1788, Luna Lu, Harbourfront Seafood, Watersedge at Campbell’s Stores, Ploos, & Bay Nine Omakase.
Douglas said Campbell’s Stores is ideally positioned to serve a diverse customer base including high-spending residential, worker and visitor markets with an expansive total trade of 4.9 million, projected to reach 5.8m by 2041, with per capita incomes of $83,956 within a 15 min drive time, 52% above the Australian benchmark.
“The opportunity to acquire a high-quality asset in a prime location on Sydney Harbour with expansive views of our iconic landmarks is extremely rare. Campbell’s Stores is a stunning building that has benefited from a comprehensive restoration and refurbishment and enjoys strong underlying cash flows from Sydney’s most experienced hospitality operators, as well as value-add and future operational opportunities,” he added. “Potential future upside is captured through further redevelopment opportunities subject to relevant approvals.”
Molony said an incoming purchaser can become part of the substantial public and private investment being undertaken within this world-renowned location and capitalise on the growing cashflows being derived from the asset.
“We anticipate a breadth of interest from international and local buyers seeking to own one of a very limited number of commercial assets located on the Sydney Harbour front.”
Sydney waterfront hospitality assets are tightly held and offerings are rare, as a result listings such as Campbell’s Stores will attract strong demand.
Recently a portion of the Searock Grill restaurant in Circular Quay sold for $6 million – at an eye-watering $122,450 per sqm.
Five properties have sold along the waterfront strip over the past few years for a combined $46.667 million.
Higher interest rates have made a small dent in per square metre prices along the strip. Other notable sales have included the Guylian Café two years ago, for $11.5 million at $153,358 per sqm, which at the time took the national record off the 43 sqm Coco bubble tea shop close by at $132,558 per sqm. That record was quickly broken by the $2.967 million sale of the pint-sized 16 sqm Gelato Tesoro shop at Lot 2, 1A Macquarie Street, at $185,437 per sqm.
The international expressions of interest campaign for Campbell’s Stores will close 4th April 2024.
