This article is from the Australian Property Journal archive
ABOUT $80 million is expected for the former Hotel Stellar site and four neighbouring mixed-use buildings on Sydney’s city fringe, offered in one line and with approval for a 19-storey tower above the hotel.
Nick Pongrass of Pongrass Properties is selling off the amalgamated Surry Hills site at 4-22 Wentworth Avenue spans 1,218 sqm.
It includes the Soda Factory bar below the hotel. Stage 1 DA approval was recently obtained for the new tower with a gross floor area of 7,500 sqm that would expand the hotel to a 202-room offering with ground floor restaurant and bar.
The neighbouring property at 24-44 Wentworth Avenue has a new restrictive height covenant preventing overshadowing of the site.
JLL’s James Aroney and Andrew Langsford, in conjunction with I.B Property’s Steffan Ippolito and Raine & Horne Projects’ James Nixon have been appointed to market the site via expressions of interest.
“Despite the impacts of lockdowns, opportunities to enter the Sydney hotel market are extremely limited, whether through an existing asset, or new development.
“This location benefits from CBD corporate demand and draws on a range of cultural neighbourhood experiences through Surry Hills and will be highly sought by hotel operators, especially given the pipeline of exciting projects in the immediate precinct,” Langsford said.
The property has come to just as bookings have been made available for the new Ace Hotel at 47-53 Wentworth Avenue, incorporating a 1915 Federation-style warehouse.
The assets are held under five separate titles positioned along the northern boundary of Surry Hills, adjoining the CBD and Hyde Park and 800 metres to Central station.
“As an alternative to redevelopment, the assets are an attractive landbank opportunity with existing holding income and strong rental upside by repositioning into a variety of uses, including creative office and retail accommodation,” Aroney said.
Nixon said Surry Hills was achieving some of the highest fringe office rents in Australia pre-pandemic, thanks to its good transport connections, architectural significance and its wealth of social and hospitality amenities. On the other side of Central station Sydney’s future tech precinct where Dexus will build Atlassian’s $1.4 billion 40-level hybrid timber tower, and has also lodged plans along with Frasers Property Australia for 130,000 sqm of workspace across two towers at Central Place, rising 35 and 37 levels.
Expressions of interest for 4-22 Wentworth Avenue close on 4th November.
