This article is from the Australian Property Journal archive
UP to $60 million is expected for the striking, recently constructed “Oculus” boutique office building on Sydney’s CBD fringe.
Designed by SJB Architects with interiors by Richards Stanisich and notable for its geometric openings, the Darlinghurst building has a net lettable area of 2,150 sqm and features end-of-trip facilities and amenities, including a rooftop terrace and on-site parking.
Oculus returns yearly net rental income of $2.5 million fully leased, with significant depreciation benefits. It is being offered with a 6.52-year weighted average lease expiry.
Colliers’ Matthew Meynell, Miron Solomons and Matt Pontey are responsible for the listing of 249-255 Crown Street, with price expectations of $50 million to $60 million.
“Oculus is a perfect opportunity for investors to acquire one of the most architecturally renowned commercial buildings within the Sydney city fringe market. In essence, not only is it optically appealing but it provides a secure covenanted income stream,” Meynell said.
Solomons said the Sydney city Fringe commercial market is “coming off the back of its strongest year on record, outpacing all other major geographic locations”.
“With businesses shifting towards a more cost-effective solution allowing greater employee benefits and the stabilisation of incentives, investors are provided with strong tenanted covenants on a long leasing term.”
Initial plans for Oculus were lodged by developer Freehold Capital in 2018, on a 664 sqm site it had amalgamated across four lots. The development was to retain the former funeral chapel building at 249 Crown Street, but plans approved in 2019 included a redevelopment of the entire parcel with the project re-christened “Crown & Goulburn”.
Just a few metres away from Oculus is Oxford Street, where Ashe Morgan, supported by the City of Sydney, is planning its Darlinghurst Collection development.
Expressions of interest for Oculus close 8th June.
National office transaction sales were down by 18% year on year in the March quarter, but the Sydney office market was among the most active across the country. Closer to the CBD, Elanor Investors Group has just announced it is buying a $185 million Pyrmont office building.
“While 2022 has somewhat remained subdued over the first quarter, this follows a typical pattern from previous years,” Pontey said.
“As such, with record buying power from both local, interstate and now international clients we anticipate the remaining year will record even lower yields and further boost capital values.”
