This article is from the Australian Property Journal archive
SINGAPORE-listed Roxy-Pacific Holdings is looking to turn a quick profit of circa $60 million on its 59 Goulburn Street office tower in Sydney’s CBD.
It acquired the 23-level tower less than three years ago from the unlisted Charter Hall Office Trust for $90 million, and is hoping to realise upwards of $150 million from the offering.
The building has a net lettable area of 18,867sqm and ground floor retail. It is 98% occupied, with the New South Wales Government as an anchor tenant, and offered with a weighted average lease expiry of 2.3 years and an estimated passing income of $8.13 million.
The purchaser was the options of repositioning the existing asset and realising rental upside; redeveloping it into a new commercial office tower; or into a 38-storey mixed-use project featuring retail and commercial space, 407 hotel suites, 90 residential units and 94 car parks.
The asset has Stage 1 Development Approval for latter option.
JLL’s Ben Hunter, James Aroney and Sam Brewer are marketing the property in conjunction with Colliers International’s Vince Kernahan and James Girvan.
Roxy-Pacific Australia’s director Ben Hopkins said the group had fielded numerous offers for the asset.
Hunter said that with the property now officially on the market and its three-fold potential, we expect to see strong interest from a diverse group of buyers.
Aroney said the asset is an opportunity of great potential.
“Its central location and development options will allow the eventual purchaser to create a new offering amongst one of Sydney’s busiest CBD precincts,” he said. “There is ongoing demand for office assets of this nature in Sydney, particularly when there is room for significant rental upside.”
Kernahan said the asset would provide developers the interim cash flow and the opportunity to develop what will be an iconic hotel and residential landmark sorely needed by the market given the recent opening of the International Convention & Exhibition Centre and the obvious shortage of such accommodation.
Australian Property Journal
