This article is from the Australian Property Journal archive
AS much as $85 million could be paid for a strategic stake in 109 Pitt St, potentially giving the purchaser a say in the future of 3,200 sqm of Sydney CBD land.
The offering includes 16 owner occupied suites and 12 tenanted offices, representing just over 26% of the commercial building’s lettable area and 25.32% of the voting rights.
It would be a key parcel for any group seeking to amalgamate one of the city’s next major development sites under the City of Sydney’s Draft Sydney Planning Strategy, according to CBRE selling agents Harry George, Kenny Duncanson and Scott Gray-Spencer.
The Draft Sydney Planning Strategy promotes increasing building heights of up to 300 metres, providing a minimum site area threshold is met. The strata lots could potentially form part of a longer-term development super site stretching from Angel Pl to Hunter St.
George said greater site areas were considered critical for the success of core Sydney CBD developments, with several super towers already being developed in the immediate area including Circular Quay Tower, Quay Quarter Tower and 210 & 220 George St.
Notwithstanding future development scenarios, CBRE’s Duncanson said the sale provided an opportunity to capitalise on the underlying strength in the Sydney office market by acquiring strata lots with a combined lettable area of 3,123 sqm.
“Historically low interest rates, low supply growth over the past decade and a significant weight of capital seeking to invest in Sydney is driving interest in CBD investment opportunities,” Duncanson said.
The B grade commercial building, also known as Randstad House and Hunter Arcade, was constructed in 1963 and refurbished in 2018 and offers 20 storeys of office accommodation and ground level retail, positioned on a 1,329 sqm site.
Expressions of interest in the suites close 27th February, with the 16 owner occupied suites offered for sale on leaseback arrangements.
