This article is from the Australian Property Journal archive
THE City of Sydney has put a blank canvas Darlinghurst property on Sydney’s city fringe to the market, following its acquisition of historic Customs House in Circular Quay from the federal government.
It is speculated to have paid around $200 million for the 174-year old building, which it has been leasing and managing since 1994.
Customs House has a net lettable area of 6,900 sqm and is home to the City of Sydney Library and popular restaurant Café Sydney, while co-working space operator Hub Australia recently announced it would open its seventh location across levels three and four of the building.
From 1845 until 1990, the building was used by the Australian Customs Service, and has been used as for mixed-use commercial purposes since 1997.
Meanwhile, Colliers agents Miron Solomons, Matt Pontey and Nick Lumley are marketing the three-level, 908 sqm building at 73-75 William Street via expressions of interest closing 13 May on behalf of the City of Sydney.
Offered with vacant possession, the property is zoned B4 Mixed Use.
“This building is a complete blank canvas, which will undoubtedly attract interest from developers, investors, value-add specialists and owner-occupiers alike,” Solomons said. “We are likely to see interest from businesses such as restaurants, boutique hotels, co-working spaces or even a corporate HQ for a medium to large firm.”
Pontey said the property is a value-add proposition.
In recent weeks, Colliers sold the three-storey Victorian terrace that housed the recently-closed Watters Gallery in Darlinghurst for $5.505 million.
Also on the city fringe, the owners of an accommodation block on the border of Redfern and Surry Hills are trying their luck with the market for a second time in two years.
Colliers and McGees Property are jointly marketing the 23-room, three-storey corner freehold at 745-747 South Dowling Street, which is being offered with an initial lease of five years with three five-year options, and currently returns $435,000 net from a share accommodation and furnished apartments operator.
The property encompasses two titles and is on a 379 sqm site zoned R1 – General Residential. It goes to auction on 9 May.
Lumley said the lease structure will also incorporate a demolition clause allowing owner operators the opportunity to take the keys and maximise cash flow. Interest expected across multiple buyer profiles ranging from investors to owner occupiers, including student accommodation and boarding house operators.
The vendors have held the property for more than a decade, and had listed the property for sale in March 2017.
Australian Property Journal
